Palo Alto Networks, Inc. (NASDAQ: PANW) stock rose about 3% Wednesday as investors favored select cybersecurity names and assessed the company's latest Unit 42 security offering despite broader market weakness.

The Technology sector fell 0.8%, while the S&P 500 declined 0.7%.

• Palo Alto Networks shares are climbing with conviction. Why is PANW stock surging?

Palo Alto Lands Among Preferred Cybersecurity Names

Ritholtz Wealth Management's Josh Brown and Sean Russo included Palo Alto Networks among four cybersecurity stocks they favor, alongside CrowdStrike Holdings, Inc. (NASDAQ: CRWD), Fortinet, Inc. (NASDAQ: FTNT) and Cloudflare, Inc. (NYSE: NET).

They left out Zscaler, Inc. (NASDAQ: ZS) and SentinelOne, Inc. (NYSE: S).

The broader cybersecurity case centers partly on growing AI-related threats, which could support demand for stronger security tools.

Palo Alto Expands Unit 42 Security Offering

Palo Alto also launched a new Unit 42 service that continuously checks companies for security weaknesses and helps address them before attackers can exploit them.

The service uses AI models from Anthropic and OpenAI to identify risks, test potential attack paths and prioritize fixes.

Palo Alto developed the service through six months of internal testing and more than 100 customer engagements, backed by a $17 million investment.

The company said its internal deployment uncovered a year's worth of security exposures within three weeks. Customer assessments also found exposures across every organization tested.

Palo Alto Carries Significant ETF Exposure

Palo Alto represents 9.10% of the First Trust NASDAQ Cybersecurity ETF (NASDAQ: CIBR), 9.11% of the iShares Expanded Tech-Software Sector ETF (BATS: IGV) and 6.40% of the Amplify Cybersecurity ETF (NYSE: HACK).

Significant inflows or outflows from these funds can translate into buying or selling of Palo Alto shares.

PANW Price Action

PANW Stock Price Activity: Palo Alto Networks shares were up 3.21% at $386.58 at the time of publication on Wednesday, according to market data.