BTIG says buy cybersecurity selloff with reaction ‘completely wrong’

BTIG reiterates Buy ratings on CrowdStrike (CRWD), Cloudflare (NET), Netskope (NTSK), Okta (OKTA), Palo Alto Networks (PANW), Rubrik (RBRK), SailPoint, (SAIL) and Zscaler (ZS) after a draft blog post on Anthropic’s new Claude Mythos model was leaked publicly. The draft post contained commentary about the model’s improved cybersecurity capabilities, and multiple media outlets have been reporting on the potential risk of a new “arms race” in the sector, the analyst tells investors in a research note. BTIG thinks “media outlets and the initial investor reaction have the read on this data point completely wrong.” It believes Anthropic is “effectively giving the world a warning on the increased cyber risk associated with AI.” The firm thinks this will drive more demand for existing cybersecurity vendors, not less. It would be buyers of the group on the selloff.