- Shares of key cybersecurity firms dropped after Anthropic launched AI security feature Claude Code Security
- CrowdStrike, Okta, Cloudflare, Zscaler, GitLab, and JFrog shares fell between 5% and 9% post-announcement
- Claude Code Security scans software code for vulnerabilities and suggests fixes during development
Shares of major cybersecurity companies declined sharply after US-based artificial intelligence firm Anthropic introduced a new AI-driven security capability within its Claude platform, triggering a broad sell-off across the sector.
Companies including CrowdStrike, Cloudflare, Zscaler, SailPoint and Okta fell between 5% and 9% following the announcement. Other cybersecurity-linked software firms such as GitLab and JFrog also saw steep declines. The broader sector reflected similar weakness, with the Global X Cybersecurity ETF dropping nearly 5% to its lowest level since November 2023.
What Is Claude Code Security?
Claude Code Security is a new feature integrated into Anthropic's Claude AI platform that scans software codebases for vulnerabilities and recommends targeted fixes. The capability is designed to help developers detect and address potential security issues during the coding process.
According to Anthropic, the tool can analyse large volumes of code, identify weaknesses and suggest patches for human review. The feature is currently being rolled out as a limited research preview to enterprise customers and maintainers of open-source software projects.
The company said the tool is intended to help teams find and fix vulnerabilities that may not be detected through traditional security review methods.
Which Stocks Were Hit
The market reaction was broad-based, affecting both individual companies and sector-wide funds.
Among the companies that saw notable declines:
- CrowdStrike shares fell around 8%
- Okta dropped more than 9%
- Cloudflare declined between 7% and 8%
- Zscaler also recorded significant losses
- GitLab and JFrog saw sharper declines during trading
ETFs tracking cybersecurity companies also fell, reflecting wider selling pressure across the segment.
Why The Announcement Moved Markets
Cybersecurity firms provide tools that help organisations identify vulnerabilities, monitor threats and protect digital infrastructure. Vulnerability detection and remediation are key components of many enterprise security platforms.
Anthropic's new feature directly addresses this area by automating the process of identifying weaknesses in software code and suggesting fixes within the development workflow.
The announcement comes amid rapid adoption of AI-powered coding tools across the technology sector. Companies are increasingly using AI to assist with software development, testing and debugging, expanding the role of automation in tasks traditionally handled by specialised tools and engineering teams.
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