New York, Feb 9, 2026, 17:19 ET — Trading after the bell.
- Palo Alto Networks climbed 4.2% to finish at $166, then barely budged in the after-hours session.
- Nasdaq is eyeing a tentative close for the CyberArk merger before the Feb. 11 market open. Shares of CYBR are slated to halt trading following Tuesday’s after-hours session.
- Morgan Stanley sounded upbeat on software demand, while Barclays lowered its target yet stuck with an “overweight” rating.
Palo Alto Networks (PANW) finished up 4.2% at $166.00 on Monday, lifted by a tech rally and renewed attention around its looming CyberArk acquisition. After hours, the stock barely budged.
Time is running short. As the takeover heads toward its last trading sessions, merger-arb funds—those betting the deal will wrap—tend to shift hedges fast. That can kick up volatility in the buyer’s shares.
According to a Nasdaq corporate actions alert, the merger is penciled in to close before trading kicks off on Feb. 11. CyberArk shares are slated for a trading halt at about 7:50 p.m. ET on Feb. 10, then will be suspended starting Feb. 12. Shareholders will get $45 in cash plus 2.2005 Palo Alto shares for every CyberArk share held. 1
Gains in the broader market gave cybersecurity stocks a lift. The S&P 500 added 0.47% Monday. Fortinet, CrowdStrike, and Cisco shares each notched advances, MarketWatch data show. 2
Mike Wilson at Morgan Stanley flagged last week’s drop in software stocks but argued the “fundamental tailwinds remain in place” for AI-related tech. In that report, software analyst Keith Weiss singled out Palo Alto as the bank’s “favorite” pick for riding what he sees as several generative-AI tailwinds boosting cybersecurity demand. 3
Some remain cautious on the rally. Barclays trimmed its price target for Palo Alto to $200 from $230, yet held onto its overweight rating, still seeing outperformance ahead, a note picked up by MT Newswires showed. 4
Palo Alto struck a roughly $25 billion agreement last July to acquire Israel-based CyberArk, aiming to expand further in the identity security arena. Back then, Palo Alto indicated it was eyeing the deal’s completion in the second half of its fiscal 2026. 5
The close is still being called tentative, leaving room for disruption in positions staked out during Monday’s rally. Clarity remains scarce for investors questioning how fast CyberArk will be folded in, or what the cash slice of the deal means for leverage, costs, and capital returns.
Next up: Palo Alto is set to deliver its fiscal second-quarter numbers after the U.S. close on Feb. 17, with a webcast slated for 4:30 p.m. ET. Traders are zeroed in on management’s outlook for demand, plus any early hints on how deal-related costs and execution are shaping up. 6
First up: Tuesday. CyberArk faces its last trading session before the merger wraps. Over on Palo Alto, attention turns to how the stock moves heading into the expected Feb. 11 close—when merger consideration is due to land.
