Cybersecurity pullback on Anthropic ‘Mythos’ leak an opportunity, says Stephens

Stephens attributes this morning’s broad weakness in cybersecurity stocks to news around leaked information regarding a new Anthropic foundation model called “Mythos” and headlines referencing more powerful cyber capabilities. However, based on the firm’s review of the reporting and a leaked Anthropic blog, it believes the market is “misinterpreting the news” and contends that the “cyber capabilities” being described relate to the model’s potential use in launching cyberattacks, not replacing cybersecurity solutions. The firm, which believes this leak reinforces the view that AI is “a cyber threat accelerant” that increases the importance of cybersecurity, views today’s weakness as a buying opportunity for the sector, the analyst added. Publicly traded companies in the cybersecurity space include Check Point (CHKP), CrowdStrike (CRWD), CyberArk (CYBR), F5 (FFIV), Fortinet (FTNT), Gen Digital (GEN), Okta (OKTA), Palo Alto Networks (PANW) and Qualys (QLYS).