CrowdStrike, Datadog and other cybersecurity stocks slide after Anthropic's AI tool launch

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 8/16/2026

1. AMAT
2. GLOB
3. SPY
4. RDDT
5. HTFL
6. SNDK
7. WDAY
8. ADYEN:NA
9. DVLT
10. ADYYF

February 23, 2026 3:52 PM EST

FILE PHOTO: A logo for Datadog is seen during the KubeCon + CloudNativeCon Europe hosted by the Cloud Native Computing Foundation (CNCF) in Paris, France, March 20, 2024. REUTERS/Benoit Tessier/File Photo

By Jaspreet Singh

Feb 23 (Reuters) - ‌Shares of ​cybersecurity ​companies including CrowdStrike and Datadog slumped on Monday, as investors weighed the potential impact of artificial ‌intelligence startup Anthropic's new security tool on the industry.

Anthropic's ⁠new feature, Claude Code Security, is designed to detect high-severity vulnerabilities ‌in open-source software repositories and ‌offer patches to fix bugs.

Shares of CrowdStrike, Datadog and Zscaler fell around 11%, while those of Fortinet and Okta ​were down roughly 6%. Palo Alto Networks dropped 3% and SentinelOne was down by 5%.

Software stocks have been ⁠battered in recent months by market fears around the growing capabilities of AI ​tools, particularly following the launch of plug-ins from Anthropic's large language model Claude, seen as the ​startup's push to become an application ‌layer.

"What you're seeing today is really the continuation of a panic-driven, narrative-led selloff," said Shrenik ⁠Kothari, director, security and infrastructure analyst at Robert W. Baird.

Claude Code Security does not handle real-time security tasks such as detecting live ⁠intrusions, stopping attacks in progress or managing compiled software components in production, ​which are capabilities provided by other specialized security platforms, said Kothari.

Some analysts have said the selloff is an overreaction, fueled by an ‌overly simplistic narrative that AI would negate the need for existing cybersecurity solutions.

Separately, AI chip ‌designer Nvidia said on Monday it has teamed up with ⁠Akamai, Forescout, Palo Alto Networks, ‌Xage Security and ​Siemens to boost real-time cybersecurity for industrial control systems.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Jonathan ‌Ananda)


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Reuters

Related Entities

Robert W Baird