US Edition
Global software stocks hit by Anthropic wake-up call on AI disruption
Anthropic’s new AI tools automate legal, sales, and marketing tasks, causing a 30% drop in software sector value and widespread market losses, analysts said.
- On Feb 3, a sell-off among US and European data, professional services, and software firms deepened as traders flagged Anthropic's Cowork updates as the trigger.
- Anthropic launched plug-ins on Jan 30 that give Claude Cowork models more agency to automate contract review, NDA triage and legal briefings, threatening billable-hour legal work.
- On Wednesday, market data show sharp sector moves, with Thomson Reuters slumping nearly 18% and RELX falling about 14%, while the S&P 500 ended down 0.8%.
- Investors rapidly repriced valuations after AI tools reduced staff needs, eroding software firms' visibility premium, while analysts warned contagion could affect hyperscalers and a $200 million Pentagon contract for Anthropic.
- Analysts including Morgan Stanley say the move intensifies competition as the legal‑AI market already hosts well‑funded startups like Harvey AI and Legora, which could pressure law firms and the billable‑hour hiring model.
93 Articles
93 Articles
The AI that shook software stocks just got a big update
Anthropic’s Cowork AI assistant sent shockwaves through Wall Street this week over concerns it could replace specialized software packages, such as for legal or financial analysis. Now Anthropic is improving the model behind that tool to make it better for office and coding work.
Anthropic’s Claude plugins spark $285 billion software stock selloff as AI targets entire SaaS workflows - Tech Startups
A quiet release from Anthropic set off one of the most violent software selloffs in years, erasing roughly $285 billion in market value across software, legal tech, financial services, and asset management. The trigger was not a new model. It […] The post Anthropic’s Claude plugins spark $285 billion software stock selloff as AI targets entire SaaS workflows first appeared on Tech Startups.
Los Angeles Times
MoneycontrolTrillion-dollar tech wipeout ensnares all stocks in AI’s path
There have been many AI-driven selloffs in the three years since ChatGPT burst into the mainstream.
By Hadas Gold and John Towfighi, CNN. Anthropic just launched a new artificial intelligence (AI) tool that could replace dozens of software platforms. And Wall Street is panicking. Claude Cowork is designed to be like an AI-powered colleague, capable of reading files, organizing folders, and drafting documents on your behalf. New plugins designed for specific sectors, such as sales, finance, data marketing, and legal, were launched on Friday. Th…
'Software-mageddon' leaves investors bargain-hunting but wary
NEW YORK, Feb 5 : Wall Street's "Software-mageddon" has been snowballing. Now investors are debating whether it is time to warm up to the beaten-down stocks.The fallout for the software industry, which includes a handful of signature stocks of the recent bull market, reflects growing anxiety over the potentia
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