TNB Tech Minute: Investors Keep Selling Off Software Stocks

Summary

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WSJ Tech News Briefing – TNB Tech Minute: Investors Keep Selling Off Software Stocks

Host: Julie Chang, The Wall Street Journal
Date: February 23, 2026
Duration: ~2 minutes

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Episode Overview

This Tech Minute delivers a concise yet impactful update on the ongoing selloff in software stocks, driven largely by investor anxiety surrounding rapid advancements in artificial intelligence. Julie Chang summarizes market gyrations, the influence of a viral research post, growing concerns for the financial sector, and a major allegation in the AI industry.

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Key Discussion Points & Insights

1. Software Stock Sell-Off and AI Jitters

• Market Downturn Deepens: The episode begins by highlighting how the weeks-long decline in software stocks worsened, with investor concerns particularly focused on how AI might disrupt the sector.
• Notable Decliners: Software companies such as Applovin, CrowdStrike, Datadog, Workday, Expedia, and Intuit were identified as among the S&P 500’s worst performers around midday, each dropping at least 7%.

  "Applovin, CrowdStrike, Datadog, Workday, Expedia, and Intuit were all among the S&P 500's worst 10 performers around midday, dropping at least 7%." (00:33)

2. AI’s Impact on Industry and Investor Sentiment

• Viral Citrini Research Post: The selling pressure was partially linked to a widely circulated post by Citrini Research. This post outlined a scenario where advanced AI capabilities could profoundly reshape the economy and the software industry’s role within it.

  "Rapid advancements in AI's ability to write code have spooked investors this year. Several of the day's biggest decliners were discussed in a now viral Sunday night post from Citrini Research." (00:42)

• AI Writing Code: There is deep investor unease about AI’s new capacity to perform complex coding tasks, potentially undermining the value proposition of many software firms.

3. Financial Services Under Pressure

• Fee Revenue Threats: Major financial institutions also saw significant share price drops. Investor attention is turning toward the possibility that AI could lower payment processing fees, disrupting a lucrative revenue stream for banks and credit providers.
• Decline in Major Financial Stocks:
  • American Express stock was down more than 7%.
  • JP Morgan, Citigroup, Morgan Stanley all declined by 4% or more.
  • MasterCard dropped about 6%; Visa was down roughly 4%.

  "Investors are parsing through the possible impacts of AI on the payment processing fees that bring in billions of dollars to the industry every year." (01:05)

4. Allegations of AI Data Abuse and National Security

• Anthropic’s Accusations: AI startup Anthropic accused three Chinese AI companies—Deepseek, Moonshot AI, and Minimax—of creating over 24,000 fraudulent accounts to extract data from Anthropic's Claude model.
  • These accounts allegedly prompted Claude over 16 million times to siphon information and boost the Chinese companies' own products.

  "Anthropic accused three Chinese AI companies of creating over 24,000 fraudulent accounts to siphon data from its Claude model and improve their own products...prompted Claude more than 16 million times." (01:26)

• National Security Concerns:
  • Anthropic emphasized that this behavior raises serious questions about military and intelligence security.
  • The accused companies did not respond to WSJ’s requests for comment.

  "Anthropic said the alleged activity raises national security concerns regarding military and intelligence systems." (01:48)

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Notable Quotes & Memorable Moments

• On Market Volatility:

  "The weeks long sell off in software stocks deepened today amid general unease about the threat posed by AI software makers." (00:27)

• AI’s Growing Power:

  "Rapid advancements in AI's ability to write code have spooked investors this year." (00:42)

• Anthropic’s National Security Message:

  "Anthropic said the alleged activity raises national security concerns regarding military and intelligence systems." (01:48)

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Timestamps for Important Segments

• 00:21 – Julie Chang introduces the main headlines and sets the tone.
• 00:33 – Details of the software stock sell-off.
• 00:42 – Impact of Citrini Research’s viral AI scenario.
• 01:05 – The drop in financial sector stocks and discussion of AI’s threat to payment processing fees.
• 01:26 – Anthropic’s accusation against Chinese AI firms.
• 01:48 – Discussion of national security implications.

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Tone and Style

The delivery is brisk, factual, and urgent—mirroring the fast-paced nature of market-driven news. Julie Chang’s language is clear, matter-of-fact, and stripped of speculation, providing listeners with a concise overview of critical developments while highlighting widespread uncertainty about AI’s market impact.

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Summary

In this brief but packed Tech Minute, Julie Chang captures a turbulent day on Wall Street: Investors, spooked by the AI revolution’s accelerating pace, are fleeing software stocks and worrying about the ripple effects on financial services. Meanwhile, new allegations of international AI data theft add a layer of geopolitical tension and national security concern, underscoring the world’s current unease about AI’s rapid advancement and its unpredictable disruptions.

For more in-depth analysis and ongoing coverage, listeners are encouraged to check out future episodes of the Tech News Briefing podcast.

Transcript

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Welcome to a new era of WI Fi boosted mobile Xfinity. Imagine that. Watch Jurassic park with Xfinity. Xfinity Internet required restrictions apply. Here's your afternoon TNB Tech minute for Monday, February 23rd. I'm Julie Chang for the Wall Street Journal. The weeks long sell off in software stocks deepened today amid general unease about the threat posed by AI software makers. Applovin, CrowdStrike, Datadog, Workday, Expedia and Intuit were all among the S&P 500's worst 10 performers around midday, dropping at least 7%. Rapid advancements in AI's ability to write code have spooked investors this year. Several of the day's biggest decliners were discussed in a now viral Sunday night post from Citrini Research. The post outlined a hypothetical scenario where AI profoundly impacts the economy in the near future. Also taking a hit shares in big banks and other financial services firms. Investors are parsing through the possible impacts of AI on the payment processing fees that bring in billions of dollars to the industry every year. American Express's stock was down over 7% as of this afternoon, while JP Morgan, Citigroup and Morgan Stanley were all down 4% or more. MasterCard was down roughly 6% and Visa was down about 4%. And Anthropic accused three Chinese AI companies of creating over 24,000 fraudulent accounts to siphon data from its CLAUDE model and improve their own products. In a blog post today, anthropic said the three companies, Deepseek, Moonshot, AI and Minimax, prompted Claude more than 16 million times. Representatives from the three Chinese companies didn't respond to requests for comment. Anthropic said the alleged activity raises national security concerns regarding military and intelligence systems. For a deeper dive into what's happening in tech, check out Tuesday's Tech News Briefing podcast.

[A]

Xfinity Tech Support. Thanks for holding.

[B]

Hi. So I live in a pretty remote place like Jurassic Park. Remote. Will Xfinity Mobile work out here?

[A]

Yep. With Xfinity WI Fi you can stay connected in all kinds of places. Plus you get access to ultra fast speeds and coverage whether you're poolside or out live streaming with a T. Rex hold still. You're about to go viral.

[B]

Welcome to a new era of WI fi boosted mobile. Xfinity. Imagine that. Watch Jurassic park with Xfinity. Xfinity. Internet required restrictions apply.