Palo Alto Networks Slides with Software ETF’s 3.7% Drop after Mythos Launch
Palo Alto Networks shares slid as part of a 3.7% drop in the iShares Expanded Tech-Software ETF after Meta and Anthropic released new AI models. Anthropic’s Mythos model delivered 17-point gains in Terminal Bench 2.0 and 13-point gains in SWE benchmarks, stoking competition fears.
1. Software Sector Selloff Hits Palo Alto Networks
Shares of Palo Alto Networks traded lower as the iShares Expanded Tech-Software ETF plunged 3.7% following the unveiling of new AI models by Meta and Anthropic. The decline highlighted investor rotation away from cybersecurity and software names after initial AI-driven gains gave way to profit-taking.
2. Anthropic’s Mythos Model Benchmarks Surge
Anthropic’s new Mythos model achieved a 17-percentage-point improvement on the Terminal Bench 2.0 test and a 13-point gain in SWE bench-verified benchmarks compared to its previous Opus 4.6 model. These substantial increases raised concerns about accelerated AI-driven competition for existing software and cybersecurity solutions.
3. Competitive Threats and Market Sentiment
Market sentiment turned cautious as investors weighed whether Palo Alto Networks’ threat detection and prevention offerings can keep pace with rapid advances from models like Mythos. The dual AI launches underscored potential disruption risks for established players if new models prove effective in real-world applications.