Palo Alto CEO buys $10M of stock amid AI‑driven sell‑off
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- Nikesh Arora bought $10 million of Palo Alto Networks shares at $146.46‑$147.48 per share, per SEC filing.
- Nikesh Arora now holds 343,394 shares directly and 758,552 shares indirectly through trusts, worth about $162 million at the $147 closing price.
- Palo Alto Networks stock fell roughly 6 % during Friday’s regular session but rose 1.3 % in after‑hours trading after the insider purchase.
- Anthropic’s upcoming AI model, reported by Fortune, sparked a sell‑off across cybersecurity stocks as investors fear its defensive and offensive capabilities.
- Piper Sandler analyst Rob Owens said Anthropic’s partnership with security vendors shows a collaborative intent rather than direct competition with firms like Palo Alto.
- Palo Alto Networks shares have dropped 20 % YTD in 2026, while the iShares Expanded Tech‑Software ETF (IGV) is down 27 % over the same period.
Why it matters: Arora’s $10 million purchase shows personal confidence in Palo Alto’s valuation, countering investor fear sparked by Anthropic’s AI model; the insider buy helped lift the stock in after‑hours, while the broader cybersecurity sector stays pressured, with Palo Alto down 20 % YTD and the iShares Tech‑Software ETF off 27 %.
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