What Happened?
A number of stocks fell in the afternoon session after Bloomberg reported that Anthropic’s preliminary second-quarter revenue topped $11.5 billion.
CNBC reported earlier in August, that Salesforce and its peers “have been under pressure on the view that tools such as Anthropic’s Claude Code and OpenAI’s Codex could hollow out software bills.” The market reaction suggests Anthropic’s print was treated as evidence that the tools are generating real dollars, not just demos.
Software had already bounced since Microsoft’s July 22 results, according to Morningstar, which left the group exposed if that fear returned. Salesforce expected to report earnings later in August, could show whether customers are still expanding applications, or shifting budget to AI assistants.
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:
- Vulnerability Management company Rapid7 (NASDAQ: RPD) fell 4.5%. Is now the time to buy Rapid7? Access our full analysis report here, it’s free.
- Automation Software company ServiceNow (NYSE: NOW) fell 4.5%. Is now the time to buy ServiceNow? Access our full analysis report here, it’s free.
- Project Management Software company monday.com (NASDAQ: MNDY) fell 4.9%. Is now the time to buy monday.com? Access our full analysis report here, it’s free.
Zooming In On monday.com (MNDY)
monday.com’s shares are extremely volatile and have had 41 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 14 days ago when the stock gained 2.9% on the news that the software sector caught a massive tailwind, fueled by easing geopolitical tensions and a fresh wave of AI-driven M&A.
Over the weekend, President Trump abruptly called off a planned military offensive against Iran. Yielding to pressure from Gulf allies, the administration shifted toward diplomatic talks to reopen the Strait of Hormuz.
This critical de-escalation relieved pressure on global energy markets and inflation expectations, accelerating a drop in Treasury yields. For software, this shifting macro backdrop is the perfect catalyst. Lower interest rates reduce the discount rate applied to expected future cash flows, driving capital back into growth-oriented tech equities.
Furthermore, a lower-yield environment provides cheaper borrowing costs to fund ongoing AI development and the aggressive acquisitions currently sweeping the industry. Strategic dealmaking continues to accelerate. Yellow.ai, a global leader in enterprise agentic AI, announced a $550 million SPAC merger with Bluerock Acquisition Corp to go public under the ticker "YAI." Meanwhile, financial automation leader AutoRek acquired Grath to integrate its AI-driven reconciliation and compliance technology.
monday.com is down 42% since the beginning of the year, and at $83.17 per share, it is trading 62% below its 52-week high of $219.15 from September 2025. Investors who bought $1,000 worth of monday.com’s shares 5 years ago would now be looking at only $272.69.
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