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TheFly reported on March 23 that William Blair lowered its rating on VRNS from Outperform to Market Perform, without assigning a price target. The downgrading was a reflection of the firm’s worries about increased unpredictability in the AI-driven software industry. According to William Blair, infrastructure software firms are about to undergo a significant shift that calls for them to reevaluate their offerings, pricing structures, and marketing tactics. The company underlined that AI’s disruptive effects on the sector are significant and unlikely to abate anytime soon, indicating continued difficulties for businesses in the infrastructure software sector.

Varonis Systems, Inc. (NASDAQ:VRNS) officially launched Varonis Atlas on March 17, which is a comprehensive AI security platform designed to give organizations full visibility and control over AI across their operations. The platform covers the complete AI security lifecycle, from discovery and risk assessment to runtime protection and compliance, and integrates with all AI systems, including hosted platforms, custom models, and agentic frameworks.

Built on VRNS’ existing data security infrastructure, Atlas links AI activity to sensitive data, enabling enterprises to identify shadow AI, enforce real-time guardrails, manage third-party AI risk, and maintain ongoing compliance, providing a structured approach to secure and trustworthy AI deployment.

Varonis Systems, Inc. (NASDAQ:VRNS) is a cybersecurity software company that provides AI‑powered data security and analytics solutions to discover, classify, and protect sensitive enterprise data, detect threats, automate risk remediation, and enforce access policies across cloud and on‑premises environments.

While we acknowledge the potential of VRNS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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