
Anthropic reported preliminary second-quarter revenue of $11.5 billion, prompting investors to sell off software stocks on concerns that AI coding tools could cannibalize traditional software spending.
The market reaction—with Rapid7, ServiceNow, and monday.com each falling between 4.5% and 4.9%—suggests investors now believe AI assistants are generating real revenue and could be winning budget share from established software vendors.
What happened
Bloomberg reported that Anthropic's preliminary second-quarter revenue topped $11.5 billion, triggering afternoon sell-offs in software stocks. Rapid7 fell 4.5%, ServiceNow fell 4.5%, and monday.com fell 4.9%.
Why it matters
The market had worried that AI coding tools like Anthropic's Claude Code and OpenAI's Codex could "hollow out software bills," but Anthropic's strong revenue print is being read as evidence those tools are generating real dollars rather than remaining experimental. This suggests customers may be shifting budget from traditional software to AI assistants, putting pressure on legacy software vendors.
What to watch
Salesforce was expected to report earnings later in August, which could clarify whether customers are still expanding applications or redirecting spending to AI tools. Software stocks had already bounced since Microsoft's July 22 results, leaving them exposed if AI adoption fears resurface.
Ask the AI about this article →
The sell-off in software stocks following Anthropic's revenue report reflects a shift in market perception about AI's threat to legacy software vendors. Earlier reporting from CNBC had flagged concerns that AI coding assistants could erode spending on traditional software platforms, but those worries remained theoretical—Anthropic's $11.5 billion preliminary second-quarter revenue appears to have transformed the concern into a tangible business reality. The market is interpreting this as evidence that customers are indeed allocating budget toward AI tools at the expense of conventional software solutions.
Software stocks were already vulnerable when the sell-off occurred. According to Morningstar, the sector had bounced since Microsoft's July 22 results, which left software equities exposed if negative sentiment returned. The timing of Anthropic's revenue disclosure thus had outsized impact: it validated the specific threat investors had been monitoring but were willing to overlook during a period of momentum. Salesforce's pending August earnings report will likely be closely watched to see whether the company's own results confirm or refute whether enterprise customers are indeed shifting budget allocations in response to AI assistant offerings.
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