Key insights
- The author argues that the market is irrationally selling SaaS and cybersecurity stocks due to advancements in AI, drawing parallels to the 2017 blockchain mania. Cloudflare's recent drop is highlighted as an example of this overreaction, suggesting that increased AI adoption should benefit, not harm, the company. The overall sentiment indicates a bearish short-term outlook for specific tech stocks due to market sentiment rather than fundamental weaknesses.
Remember when Long Island Iced Tea rebranded to Long Blockchain Corp and tripled? Kodak launched a shitcoin and doubled? Nobody knew what a merkle tree was but blockchain was going to change everything. Number go up.
Now it’s number go down. Claude drops a model and the entire software sector eats shit. Anthropic announces Mythos and security stocks lose 20% in a session.
Cloudflare lost 14% in a day. A company that runs CDN, DDoS protection, and edge compute across 300+ cities. Internet plumbing. You can’t replace a data center with a smarter chatbot. More AI adoption means more traffic, more endpoints, more attack surface - all stuff Cloudflare sells. They got dumped because some terminal tagged them cybersecurity and cybersecurity is in the kill zone now I guess.
2017: blockchain, euphoria, buy everything. 2025: Anthropic, apocalypse, sell everything.
Sure some SaaS names should genuinely worry but “Claude got smarter and detected some bugs therefore sell Cloudflare cause cybersecurity is f-ed” is regarded.
PS: I used Claude to write this post therefore Reddit is f*cked.