In this article

Cybersecurity stocks dropped for a second day on Monday as investors fretted over new artificial intelligence security tools that threaten to displace the sector’s longstanding business models.

Anthropic on Friday debuted a new security tool to its Claude model that the AI lab said could scan software code for vulnerabilities and suggest solutions.

The move led to a freefall in cyber stocks that spilled over into Monday’s session, raising concerns that these tools could replace tasks handled by cybersecurity companies.

CrowdStrike