Software Stocks Selloff over Anthropic's 'Mythos' model

https://finance.yahoo.com/markets/stocks/articles/software-stocks-selloff-pltr-msft-145053320.html

The core story: Anthropic's unveiling of Claude Mythos Preview, and its accompanying Project Glasswing initiative, has rattled the broader software sector in two separate but compounding ways.

Project Glasswing was announced after how good Claude Mythos is testing for cybersecurity tasks

So why did software stocks get smoked?

One narrative hits cybersecurity stocks: do AI-powered exploits obsolete traditional security tools?

The other hits enterprise software and AI platform stocks like Palantir, where the threat is competitive displacement from Anthropic's rapidly growing commercial business. MSFT sits awkwardly in the middle ... simultaneously a Glasswing partner and a company whose entire software product catalog just got hit with a zero-day audit.

For context, Opus 4.6 managed an exploit development success rate of just over zero percent, Mythos Preview generated a working exploit 72.4 percent of the time. (holy shit)

So why is this a Palantir post?

I wanted to set the scene for a recent Michael Burry post... he said: "Anthropic is eating $PLTR Palantir's lunch. That massive boost from $9B to $30B ARR at Anthropic is because Anthropic offers the easier, cheaper, intuitive solution for businesses. PLTR can have government, which is low margin and small."

When I invested in Palantir in 2021, my core thesis revolved around their ability to pivot into commercial, something they've been slow to do.

Palantir is down 32% below its 52-week high from November 2025.

(disclosure: I held Palantir from 2021-late 2025 when I was selling covered calls and got a little too excited - the shares sold)

What am I doing?

If you've been a flanker for awhile, you know what I'm about to write!

I LOVE that software stocks are getting beaten up so much right now. I'm looking for the ones with true moats that I'll be able to buy on the cheap