What Happened?
A number of stocks fell in the afternoon session after Anthropic released new models (Claude Fable 5 and Claude Mythos 5) which were described as built for "the hardest knowledge work and coding problems."
Mythos had been restricted for roughly two months under Project Glasswing, a managed rollout to select governments and enterprises designed to contain its cybersecurity risk profile before a wider release. That matters because the SaaSpocalypse thesis gets reinforced every time a more capable AI agent arrives. When Anthropic launched Claude Cowork in January, it triggered a $285 billion rout in software stocks in a single session, with Goldman's US software basket falling. This is another iteration of the same logic: if an agent available for $20 a month can now complete long-run, multi-step knowledge work, the case for more expensive per-seat enterprise subscriptions gets harder to defend with each new model generation.
Adding to the weakness, US Central Command confirmed an American Apache helicopter had gone down near the coast of Oman, and Trump said the US "must respond" to what he described as an Iranian attack over the Strait of Hormuz. The Apache helicopter incident gave the software sector a macro headwind on top of those pressures.
Software is a long-duration asset, its valuation is rooted in future cash flows, making it particularly exposed to any development that firms up the case for sustained higher interest rates. An Iranian attack on US military assets over the Strait of Hormuz is precisely that kind of development.
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:
- Communications Platform company Twilio (NYSE: TWLO) fell 4.1%. Is now the time to buy Twilio? Access our full analysis report here, it’s free.
- Video Conferencing company RingCentral (NYSE: RNG) fell 4%. Is now the time to buy RingCentral? Access our full analysis report here, it’s free.
- Tax Software company Intuit (NASDAQ: INTU) fell 4%. Is now the time to buy Intuit? Access our full analysis report here, it’s free.
Zooming In On Twilio (TWLO)
Twilio’s shares are very volatile and have had 26 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 biggest move we wrote about over the last year was about 1 month ago when the stock gained 18.7% on the news that the company reported strong first-quarter 2026 financial results that surpassed analyst expectations and provided an optimistic forecast for the upcoming quarter.
The company posted revenue of $1.41 billion, up 20% year-on-year, and adjusted earnings per share of $1.50, both comfortably beating Wall Street estimates.
Looking ahead, Twilio guided for second-quarter revenue of $1.43 billion at the midpoint, which was also ahead of expectations. Investors were also encouraged by a significant improvement in profitability, with the company's operating margin expanding to 7.7%, a notable increase from 2% in the same quarter last year. This demonstrates greater operational efficiency as operating expenses grew slower than revenue.
Twilio is up 47% since the beginning of the year, but at $202.84 per share, it is still trading 14.3% below its 52-week high of $236.64 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Twilio’s shares 5 years ago would now be looking at only $646.46.
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