Palo Alto Networks, Inc. (NASDAQ:PANW) shares tumbled on Friday on reports that AI startup Anthropic inadvertently exposed internal data.
• Palo Alto Networks shares are sliding. Why is PANW stock falling?
Significant Security Lapse at Anthropic
The lapse allegedly revealed details of an unreleased model, "Claude Mythos," and an invite-only CEO retreat.
Anthropic reportedly left nearly 3,000 assets accessible via its content management system (CMS).
The company attributed the incident to "human error in the CMS configuration." A spokesperson told Fortune the issue was "unrelated to Claude, Cowork, or any Anthropic AI tools."
Key Events: Palo Alto Networks
This week, Palo Alto Networks disclosed Prisma AIRS 3.0, positioning it as a single platform that delivers end-to-end discovery, risk assessment and protection "across the agentic lifecycle." The company also emphasizes that Prisma AIRS is designed to cover "primary threats and risks" tied to AI applications and autonomous agents, aiming to consolidate tooling into one platform rather than multiple point products.
Palo Alto Networks also unveiled "the industry's most secure browser built for agentic AI," positioning the new Prisma Browser as a way to bring secure, AI-driven work directly to end users. The announcement is tied to the company's Prisma SASE platform and is presented as a response to the "agentic AI era," with messaging centered on secure access and end-user protection.
Technical Analysis
The broader market is trading lower today, led by weakness in the Nasdaq (QQQ) down 1.21% and the S&P 500 (SPY) down 0.94%, with only three sectors advancing versus eight declining. Defensive areas such as Energy (XLE) (+1.53%), Consumer Staples (XLP) (+1.08%) and Utilities (XLU) (+1.04%) are holding up better while riskier pockets lag.
Palo Alto Networks is trading 11.3% below its 20-day SMA and 20.3% below its 100-day SMA, keeping the intermediate trend pointed down as sellers have controlled rallies. Shares are down 17.59% over the past 12 months and are sitting closer to their 52-week lows than highs.
Market Indicators
The RSI is at 41.20, which sits in neutral territory but leans toward weaker demand after the recent selloff. MACD is at -1.1047 versus a signal line of -0.3992, a bearish setup that suggests downside momentum is still in control.
The combination of RSI in the 30–50 range (41.20) and a bearish MACD points to mixed momentum.
- Key Resistance: $170.50
- Key Support: $139.50
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the May 19 (estimated) earnings report.
- EPS Estimate: 65 cents (Down from 80 cents year-over-year)
- Revenue Estimate: $2.94 billion (Up from $2.29 billion YoY)
- Valuation: P/E of 86.9x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $214.04. Recent analyst moves include:
- Freedom Broker: Buy (Lowers target to $210 on March 11)
- Wells Fargo: Initiated with Overweight (Target $200 on March 3)
- Citigroup: Buy (Lowers target to $210 on Feb. 19)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Palo Alto Networks, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 11.57) — The stock is lagging, which lines up with its position below key moving averages.
- Value: Weak (Score: 2.2) — The market is still pricing PANW at a premium, leaving less room for error if growth cools.
- Growth: Strong (Score: 89.92) — The company screens well on growth factors, supporting the long-term platform narrative.
The Verdict: Palo Alto Networks,’s Benzinga Edge signal reveals a growth-heavy profile with weak momentum and weak value characteristics. For longer-term investors, the setup often improves when momentum stabilizes (or reverses) while growth expectations remain intact.
Top ETF Exposure
- iShares Expanded Tech-Software Sector ETF (BATS:IGV): 4.70% Weight
- First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR): 7.46% Weight
- Amplify Cybersecurity ETF (NYSE:HACK): 4.80% Weight
Significance: Because Palo Alto Networks carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
PANW Stock Price Activity: Palo Alto Networks shares were down 5.35% at $148 at the time of publication on Friday, according to Benzinga Pro data.
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