Cybersecurity Stocks Plummet Amid AI Fears, Analysts Advise 'Buy the Dip'

• Cybersecurity stocks are selling off due to fears of AI disruption, with the iShares Cybersecurity and Tech ETF (IHAK) falling over 3% and major players like CrowdStrike and Cloudflare shedding around 8% on Friday.
• Anthropic's new Claude Code Security tool, which scans code for vulnerabilities, is seen as the catalyst for the panic-driven sell-off.
• Analysts from UBS and Wedbush believe the market reaction is overblown, arguing that AI companies are unlikely to fully disrupt established cybersecurity models.
• JPMorgan identifies current cybersecurity leaders like CrowdStrike, Okta, Zscaler, and Palo Alto Networks as investment opportunities, citing high demand and strong existing networks.
• Morgan Stanley reiterated an 'overweight' rating on JFrog, stating its business is distinct from Anthropic's new tool, suggesting its sell-off is 'overdone'.