Cybersecurity Stocks Drop Following Anthropic’s New AI Security Tool Launch

Published: 24 Feb 2026

Shares of major cybersecurity firms, including CrowdStrike, Datadog, and Zscaler, fell sharply after Anthropic unveiled Claude Code Security, a new AI tool aimed at identifying vulnerabilities in open-source software. While the market reacted negatively, analysts suggest the selloff may be overblown, as the tool does not replace real-time threat detection capabilities offered by existing cybersecurity platforms.

Market Reaction to Claude Code Security

Following the announcement of Anthropic’s AI security feature, the market saw notable declines in cybersecurity stocks. CrowdStrike and Datadog fell approximately 11%, while Fortinet and Okta dropped around 6%. Palo Alto Networks and SentinelOne also experienced moderate declines of 3% and 5%, respectively.

The declines reflect investor concerns that AI tools like Claude Code Security could disrupt the cybersecurity landscape by offering automated vulnerability detection and patching for open-source software.

What Claude Code Security Does

Claude Code Security is designed to identify high-severity vulnerabilities in open-source repositories and propose fixes. It does not handle live intrusion detection, stop attacks in progress, or manage compiled software in production environments. These capabilities remain the domain of traditional cybersecurity platforms.

Analyst Perspective

Shrenik Kothari, director of security and infrastructure at Robert W. Baird, described the selloff as “a continuation of a panic-driven, narrative-led market reaction.” Some analysts argue that the drop in stock prices may be exaggerated, as investors may be conflating AI’s potential with immediate disruption to cybersecurity operations.

Industry Moves Beyond Anthropic

Separately, Nvidia has partnered with companies such as Akamai, Forescout, Palo Alto Networks, Xage Security, and Siemens to strengthen real-time cybersecurity measures for industrial control systems, highlighting ongoing innovation in the sector beyond Anthropic’s AI solution.

The launch of Claude Code Security underscores AI’s increasing influence in cybersecurity, but experts emphasize that current AI tools complement rather than replace existing security solutions.

Source:

Reuters