Anthropic Launches Claude Code Security AI Tool and Sends Cybersecurity Company Shares Tumbling in the United States

Shares in leading cybersecurity companies have tumbled following the launch of Anthropic’s new AI-powered code vulnerability scanner, Claude Code Security, on February 20.

The tool, currently in limited research preview, promises to scan entire codebases, validate findings, and even suggest fixes—all with the reasoning skills of a human security researcher.

Investors reacted swiftly. Since the launch, top U.S.-listed cybersecurity companies have seen notable declines in stock prices, signaling market anxiety over the potential disruption posed by Claude.

How Claude Code Security Works

Anthropic describes Claude as a model capable of “reasoning through code like a skilled security researcher.”

Unlike traditional pattern-matching tools, Claude traces data flows, understands the context of operations, and identifies vulnerabilities that have escaped expert human review for decades.

Claude Opus 4.6, Anthropic’s most advanced model, has already flagged over 500 high-severity vulnerabilities across tested codebases, according to VentureBeat.

The AI can recommend patches for review, offering a human-like thought process in evaluating code safety.

Interestingly, OpenAI released a benchmark for AI models on February 19 to evaluate their ability to detect, exploit, and patch smart contract vulnerabilities.

Claude Opus 4.6 reportedly outperformed all competitors, cementing its position as a formidable new entrant in AI-driven cybersecurity.

Cybersecurity Shares Take a Hit

The launch of Claude coincided with a sharp decline in the stocks of leading U.S. cybersecurity firms.

Palo Alto Networks (PANW), America’s largest cybersecurity company with a market cap of $116 billion, slid nearly 9% since February 20.

CrowdStrike (CRWD) experienced a heavier loss, with shares down 18%, wiping out $20 billion in market value.

Other major players, including Fortinet (FTNT), Cloudflare, and Zscaler, also saw significant declines.

Analysts suggest the sell-off reflects growing concern that AI tools could replace some functions traditionally handled by human cybersecurity professionals.

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

Market Analysts Explain the Drop

Experts note that the reaction is not entirely irrational.

The Kobeissi Letter highlighted that when AI begins to replicate human work, the pricing power in markets shifts to buyers rather than providers—a fundamental shift with real financial implications.

Wedbush analysts described the phenomenon as “AI Ghost Trade fears,” noting that Anthropic’s entry into the cybersecurity space underscores a broader trend:

AI is poised to become a key driver of cybersecurity strategy and investment, despite short-term volatility.

Industry Implications

Claude’s success demonstrates a growing intersection between AI and cybersecurity.

As AI models improve, companies may increasingly rely on machines for proactive vulnerability detection and automated patching.

While this could enhance overall security, it also raises questions about workforce shifts, regulatory oversight, and the role of human experts.

What’s next?

Investors will be watching closely to see if traditional cybersecurity firms adapt by integrating AI capabilities or risk losing market share.

Meanwhile, developers and organizations may begin experimenting with Claude to identify vulnerabilities in real-world codebases, potentially setting a new industry standard.

Analysts suggest that over the coming months, the market will recalibrate as the long-term impact of AI on cybersecurity becomes clearer.

Summary

Anthropic’s Claude Code Security launch has rattled U.S.-listed cybersecurity firms, with shares in companies like Palo Alto Networks, CrowdStrike, and Fortinet falling sharply.

Claude Opus 4.6 identifies vulnerabilities with a human-like reasoning process and has already discovered hundreds of high-severity issues.

Analysts attribute stock drops to fears of AI disrupting traditional cybersecurity roles, while experts predict the technology could reshape how firms detect, patch, and prevent code vulnerabilities in the future.