Despite moderately cautious investor sentiment, today’s session marks yet another day of sharp declines for software stocks. This move is driven almost entirely by reactions to fresh news and speculation about the capabilities of Anthropic’s software.
The sell-off no longer seems limited to companies that, in some hard-to-pin-down way, have built “too little AI” into their business models, given that Palantir, a company that is also, de facto, an AI play, has been sliding for several days as well. Over the past week alone, Palantir has lost more than a dozen percent in market value. Many investors and analysts see Palantir as potentially losing market share to Anthropic’s software.
It is not entirely clear how Anthropic, a company that loses money on every “token” used in its products, would be able to take market share from Palantir, which remains one of the fastest-growing and most profitable companies on Wall Street.
PLTR.US (D1)
The share price is increasingly struggling to hold the key resistance area around $130. Supporting the bulls are an oversold RSI reading and upward momentum in the EMA averages, which remains positive. Source: xStation5
Declines are also hitting Cloudflare, Snowflake, and ServiceNow. These companies are down about 10% in today’s session. What appears to be happening in the market today is an attempt to price in how an unprofitable, non-public product, offered by a company that is itself also unprofitable and not publicly listed, could disrupt a dozen different markets.
Markets currently dominated by companies that have been operating in them for decades and that, sooner or later, show no signs of being “pushed out” by AI.
Losses are also deepening in CrowdStrike and Palo Alto, with both stocks down about 7% today. Claude Mythos is said to be capable of autonomously finding vulnerabilities, which would supposedly eliminate cybersecurity companies from the market. Management, however, still has not explained why information about Claude Mythos leaked from Anthropic’s servers ahead of any official release, especially if the company truly has a model so powerful that it would strip entire sectors of their business rationale.
PANW.US (D1)
The stock’s valuation is slowly returning toward local lows. Further downside is supported by the crossover of the 100- and 200-period EMAs; however, sellers would still need to break through not one, but two strong resistance zones. Source: xStation
Daily summary: Nervous anticipation, SaaS sell-off and weak macro data
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