Anthropic’s new AI tool wipes billions off cybersecurity stocks

Anthropic’s new AI tool, Claude Code Security, sent shockwaves through the cybersecurity sector this week, wiping billions off major tech stocks within hours of its announcement. Launched on Thursday as a limited research preview, the tool scans codebases for vulnerabilities, flags critical risks and suggests ready-to-apply patches. Despite no revenue disclosures, the market reaction was swift and severe.

What is Claude Code Security?

Claude Code Security is built into Anthropic’s Claude Code platform on the web. It is currently available to Enterprise and Team plan customers, with priority access for open-source maintainers.

Unlike traditional rule-based security scanners, which search for known patterns of vulnerabilities, Claude Code Security employs generative AI to read and reason about code. It understands how data flows through an application and detects intricate logic errors that are typically overlooked by other security scanners.

Anthropic claims its Claude Opus 4.6 model has already detected more than 500 vulnerabilities in production open-source projects. Each finding undergoes multi-stage verification, and human approval is required before any patch is applied.

Why did cybersecurity stocks fall?

The announcement triggered sharp declines across cybersecurity stocks. CrowdStrike was down by 8%, Okta declined by more than 9%, and Cloudflare declined by 8%. The Global X Cybersecurity ETF ended the day at its lowest point since November 2023.

Analysts believe that investor nervousness about AI disrupting the traditional software paradigm had a significant impact. As AI continues to automate complex processes, the market responds to the threat of code auditing software disrupting the cybersecurity sector.

However, some analysts believe that the market reaction may be overstated. "Cloud Code Security is a vulnerability detection platform, while other companies like CrowdStrike and Okta are endpoint security and identity management specialists,” said Jefferies analyst Joseph Gallo.

Joseph Gallo also added that the cybersecurity sector could ultimately benefit from the development of AI, but market volatility could continue due to the rise of AI-driven disruption headlines.