What Happened?
A number of stocks fell in the afternoon session after the leak of Anthropic's "Claude Mythos" model ignited fresh concerns across the software sector.
This "AI Scare Trade" hammered giants like Salesforce and Adobe, as Wall Street weighed whether these platforms would be integrated or simply rendered obsolete by low-cost, agentic intelligence. Compounding the disruption was macroeconomic volatility fueled by the escalating Middle East conflict. Brent crude prices surged as U.S.-Israeli operations against Iranian infrastructure heightened fears of a prolonged energy shock. This spike reignited inflation anxieties, pushing the Nasdaq Composite deeper into correction territory.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Communications Platform company Twilio (NYSE: TWLO) fell 4.6%. Is now the time to buy Twilio? Access our full analysis report here, it’s free.
- Data Infrastructure company Elastic (NYSE: ESTC) fell 5.6%. Is now the time to buy Elastic? Access our full analysis report here, it’s free.
- Banking Software company nCino (NASDAQ: NCNO) fell 6.1%. Is now the time to buy nCino? Access our full analysis report here, it’s free.
- Data Infrastructure company C3.ai (NYSE: AI) fell 6.1%. Is now the time to buy C3.ai? Access our full analysis report here, it’s free.
- Video Conferencing company Five9 (NASDAQ: FIVN) fell 4.5%. Is now the time to buy Five9? Access our full analysis report here, it’s free.
Zooming In On nCino (NCNO)
nCino’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 5.4% on the news that Anthropic announced that its Claude AI assistant can now control computers to complete tasks by imitating human keystrokes and mouse movements.
Investors reacted to the possibility that enterprise value would migrate from the application layer to the intelligence layer, leaving legacy software providers vulnerable to displacement by autonomous agents that can operate across platforms. Analysts added that the "agentic era" could lead to massive margin compression as software companies lose their pricing power.
nCino is down 43.2% since the beginning of the year, and at $14 per share, it is trading 57.2% below its 52-week high of $32.69 from August 2025. Investors who bought $1,000 worth of nCino’s shares 5 years ago would now be looking at only $222.50.
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