Snowflake's stock fell sharply during intraday trading, dropping 5.51% as part of a broader sector selloff affecting software companies worldwide.

The decline comes amid mounting investor concerns that advances in artificial intelligence could disrupt traditional software business models. The selloff was triggered by Anthropic's recent launch of plug-ins for its Claude Cowork agent, which enables automated tasks across legal, sales, marketing and data analysis - areas where many software companies generate significant revenue.

Software stocks are seen as particularly vulnerable to AI disruption as tools like Claude increasingly automate routine tasks that have long underpinned the industry's pricing power. Analysts note that investors are shunning the software market due to uncertainty around what AI agents can do and fears of competition from AI-native firms.