Cybersecurity stocks experienced a decline for the second consecutive day amid concerns over emerging artificial intelligence (AI) tools that could disrupt traditional business models in the sector. Following Anthropic’s introduction of a new security tool that can scan software code for vulnerabilities, significant drops were observed in major cybersecurity stocks. CrowdStrike and Zscaler fell approximately 9%, while Netskope declined nearly 10%. Other companies such as SailPoint, Okta, SentinelOne, and Fortinet also saw losses, with the iShares Cybersecurity & Tech ETF dropping nearly 4%. In response, CrowdStrike CEO George Kurtz emphasized on LinkedIn that AI tools address different cybersecurity challenges and do not replace existing platforms like Falcon. He asserted the necessity of robust security systems to prevent breaches. The recent AI advancements have similarly unsettled the broader software sector, with significant market losses reported by firms like Salesforce and Microsoft, highlighting the ongoing impact of AI on technology industries.
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