By Emily Bary
CEO Nikesh Arora put his own money on the line to buy up the beleaguered cybersecurity stock as it got weighed down by concerns about a new Anthropic AI model
Palo Alto Networks CEO Nikesh Arora now owns about $162 million worth of his company's stock.
Palo Alto Networks CEO Nikesh Arora sought to buy the dip as cybersecurity stocks sold off Friday in the face of fresh Anthropic concerns.
Arora purchased about $10 million worth of Palo Alto Networks shares (PANW) on Friday at prices between $146.46 and $147.48, according to a filing with the Securities and Exchange Commission.
Palo Alto Networks didn't immediately respond to a MarketWatch request for comment on behalf of the company or Arora.
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When a corporate insider like an executive or a board member buys stock on the open market, that can be interpreted as a signal of confidence in the company's future direction. An insider buy can also be viewed as an indication that the purchaser sees shares as undervalued at current levels.
Shares of Palo Alto Networks rose more than in Friday's extended session.
Arora now owns 343,394 shares of the company directly and a combined 758,552 additional shares indirectly through two trusts. Together, those are worth about $162 million based on Friday's closing price near $147.
His latest purchases came as shares of Palo Alto Networks slid alongside those of other cybersecurity companies in the regular session on Friday. Investors appeared spooked by Fortune's report of a forthcoming Anthropic model that both offered cybersecurity-related functions of its own and contained other powerful features that might thwart traditional means of cyber defense. Anthropic is said to be offering an early-access version of the model to cyber defenders in a bid to help them prepare for the new capabilities.
Palo Alto Networks shares fell about 6% on the day.
Read: Palo Alto Networks and other cybersecurity stocks slide on fresh Anthropic fears. Investors may be overreacting.
The extent of the stock declines puzzled some analysts, who still struggle to see AI model operators like Anthropic and OpenAI as major threats to mainstream cybersecurity vendors.
&#34;Though this model clearly represents a notable advancement from an offensive capability perspective, Anthropic's move to partner with security vendors to help provide more robust defenses clearly signals its desire to partner rather than compete with security vendors,&#34; Piper Sandler's Rob Owens said in a note to clients on Friday.
Owens added that &#34;the advancement of these capabilities should serve to further accelerate the need for organizations to improve cyber defenses and fight AI with AI.&#34;
See more: These 4 cybersecurity stocks are Wall Street's favorite AI-proof plays
Nonetheless, software investors have been jittery this year around all sorts of feature announcements from Anthropic and other AI entities.
Palo Alto Networks' stock has dropped 20% over the course of 2026 to date, while the iShares Expanded Tech-Software ETF has lost 27%.
-Emily Bary
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(END) Dow Jones Newswires
03-28-26 1217ET

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Palo Alto Networks CEO Nikesh Arora purchased $10 million worth of company shares amid concerns over a new Anthropic AI model affecting cybersecurity stocks. Following the purchase, Arora's total holdings are valued at approximately $162 million. Despite a 6% drop in shares due to market jitters, analysts suggest that the partnership between Anthropic and security vendors may enhance cyber defenses rather than pose a threat. The stock has declined 20% in 2026, while the tech-software ETF has lost 27%.

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Palo Alto Networks CEO sends a message through his $10 million stock purchase