On July 21, Okta fell 5.1% in regular trading, trading at approximately $140.85/share, with turnover of $1.16 billion. The decline came amid a broad selloff in cybersecurity stocks triggered by Anthropic's introduction of a new security feature in its Claude AI model.

Anthropic announced that the new tool can scan code bases for security vulnerabilities and suggest targeted software patches for human review, currently in a limited research preview stage. The news sent cybersecurity stocks into a sector-wide flash crash, with CrowdStrike falling approximately 8%, Cloudflare dropping about 8.1%, SailPoint declining roughly 9.4%, and Zscaler falling approximately 5.5%. The Global X Cybersecurity ETF fell about 4.9%.

Analysts noted that AI-assisted coding and security tools have intensified investor concerns about disruption to traditional IT and cybersecurity companies, warning that automated AI solutions could compress profit margins and force rapid innovation. The software sector has faced sustained selling pressure, with the iShares Expanded Tech-Software Sector ETF down over 23% year-to-date, on pace for its worst quarterly decline since 2008.

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