tech
February 23, 2026
Cybersecurity stocks are the latest AI victim. Analysts say buy the dip
Analysts from across Wall Street believe that the fears are overblown, and delivered names they think will outperform the most.
TL;DR
- Cybersecurity stocks are selling off due to fears of disruption from AI, specifically Anthropic's Claude Code Security tool.
- Major cybersecurity firms like CrowdStrike, Cloudflare, and Okta have seen significant stock price drops.
- Analysts at UBS believe AI companies are unlikely to build infrastructure controls like endpoint agents or identity platforms, suggesting limited overlap with current cybersecurity revenue streams.
- Some analysts, including those at JPMorgan, view the sell-off as an opportunity to invest in companies like CrowdStrike, Okta, and Zscaler.
- Other analysts, like Morgan Stanley, reiterate positive ratings on companies like JFrog, distinguishing their business model from AI code security tools.
- Wedbush analysts see CrowdStrike, Palo Alto Networks, and Zscaler as long-term winners, arguing that increased AI use will elevate cyber threats and benefit the cybersecurity sector.
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