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Software stocks selloff: PLTR, MSFT drop on Anthropic’s ‘Mythos’ model fears

AuthorLouis Juricic
Published 04/09/2026, 10:20 AM
8
© Reuters

© Reuters

In this article:
MSFT+0.40%
ORCL+3.43%
CRM+1.42%
PANW+2.62%
IGV+1.20%
PLTR+2.95%

Investing.com -- Palantir Technologies (NYSE:PLTR) fell 7% Thursday as software stocks declined following new AI product launches and comments from short seller Michael Burry about competitive threats.Get premium commodity market insights with InvestingPro subscription

The iShares Expanded Tech-Software Sector ETF dropped 3.7%, with top holdings including Palantir, Microsoft, Oracle, Salesforce, and Palo Alto Networks all trading lower. The selloff came after Meta unveiled a new artificial intelligence model and Anthropic launched Claude tools for building agents. Ongoing fears about Anthropic’s powerful new Mythos model also impacted the sector. 

Burry specifically highlighted Palantir’s vulnerability to competition from Anthropic, writing that "Anthropic is eating $PLTR Palantir’s lunch. That massive boost from $9B to $30B ARR at Anthropic is because Anthropic offers the easier, cheaper, intuitive solution for businesses. PLTR can have government, which is low margin and small."

The pressure on software stocks intensified following Anthropic’s release of its Mythos model, which demonstrated significant improvements in software engineering tasks. According to Anthropic’s system card, Mythos showed a 17 percentage point improvement in Terminal Bench 2.0 and 13 percentage point improvement in SWE bench-verified benchmarks compared to the previous Opus 4.6 model.

Kotak Institutional Equities analyst Kawaljeet Saluja commented, "Anthropic’s Mythos model exhibits a step-jump in benchmark performance across software engineering tasks, a deviation from the trajectory of incremental/moderate improvements in the recent past. Mythos provides a large improvement in agentic software development, based on qualitative assessments. We believe that the model raises near- to medium-term disruption risks for IT services with the caveat that model capabilities are largely unproven in real-world scenarios due to a lack of a public release."

Latest comments

This should be investigated by the SEC, it's not normal that software stocks fall sharply every time Anthropic or OpenAI release some new AI tool, that is barely a threat to software stocks. These shortsellers should be prosecuted.
The problem is that software companies are no longer investable at the moment, because of this scam. And a lot of people are longterm investors, not all of them are traders. So yes, it sucks for them. But if it was based on fundementals, people could accept it. But it's based on complete nonsense. It's time for whales to unite and squeeze the hell out these crooked shortsellers, GameStop style!
@HarryWild, you must not forget, software stocks get hammered every time some new AI tool is released, does this make sense? We all get it that AI might disrupt business for some of these companies, but this should be a one time event. And AI is actually already integrated in products offered by companies like HubSpot, Monday.com, ServiceNow, Salesforce, Microsoft, CrowdStrike, Zscaler, Oracle, Adobe, Figma, SAP and Autodesk, to name a few. So how is it a threat? Will all companies in the world run their complete business on LLMs made by Anthropic and OpenAI, and will everyone vibecode their own apps? Only than this software sell off makes sense, at least somewhat, because according the latest quarterly reports, numbers still look great of the companies I mentioned. But this is very far fetched and highly unlikely, all experts know this.
@ HarryWild, actually I think Jensen Huang (Nvidia's CEO) knows way more than Michael Burry about software/hardware and AI. And he called the software sell off the most illogical thing ever, go think about this. Michael Burry is a nobody compared to him.
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