Anthropic AI Tool Sparks Stocks Selloff | 2:43
Bloomberg Television | 3.02M subscribers | 32,548 views | February 4, 2026
Posted on 02/04/2026 3:40:37 AM PST by SunkenCiv
Anthropic AI Tool Sparks Stocks Selloff | 2:43
Bloomberg Television | 3.02M subscribers | 32,548 views | February 4, 2026
(Excerpt) Read more at youtube.com ...
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TranscriptTalk us through this new model that was released by Anthropic. Why did it cause so much disruption yesterday? I mean, you could argue that Anthropic is having a bit of a deep sea moment, if you remember from a year or two back, really disrupting the market with these work tools.
It started with the cloud code, which kind of helped coders to essentially develop their software quicker and in a more automated way than they kind of transformed that into kind of code work, which applies across a whole broad range of productivity tools. And now the latest twist in that is they brought out a specific automation tool for legal services, and that really disrupted a lot of the big kind of professional information service names yesterday, like RELX, for example.
But I think that's just kind of sparking broader fears that come out of Anthropic that really focused on business productivity tools are really making traction. It's really going to accelerate the disruption in existing business models and not just traditional non-tech business models, but also new AI models too. So that's really kind of spooked investors, and anything that's got the slightest hint of AI to do with that in terms of kind of software and services is kind of feeling the effects.
And it wasn't just software names. Yesterday we saw a big sell-off, for example, in advertising agencies that have been investing heavily in the next evolution of their business models. But even they suffered despite the fact that Publicis reported good results. And I wonder whether, as you say, this is one of those game changer moments for software as a service.
And you look at the divergence of performance of that basket versus other parts of the market. Has the long-term investment thesis into software as a service changed on the back of this? Because, you know, quite clearly there's disruptive technology that's coming and really changing the investment thesis over a medium-term horizon.
Yeah, it is. And I think it's, I guess, really forcing investors to kind of question again even the kind of the newer businesses like software now, for example, are kind of potentially at risk. And this is kind of perhaps a bigger and quicker disruption to, you know, how you develop these businesses, how quickly you can evolve the code, and what the right platforms are. So, yeah, I think if people are perhaps going back to the drawing board a bit, listen, it's a bit of a kind of sell now, ask questions later kind of better to kind of retreat and take risk off and figure the future out before stepping back into the market.YouTube transcript reformatted at textformatter.ai.
Alphabet (GOOGL) "can be displaced entirely" if advertising revenue slows down quickly, says Kim Forrest. She explains her case for the "existential crisis" AI brings to it and other Big Tech firms. Cory Johnson adds onto Kim's case by offering clarity to the murkiness of Alphabet's earnings ahead of this week's report. That said, Cory is impressed with the amount of money Mag 7 companies are saving for AI infrastructure. He talks about the path ahead for Meta Platforms (META) and Microsoft (MSFT) after their reports.Mag 7's "Commitment" to Data Centers & GOOGL "Existential Crisis" | 6:54
Schwab Network | 257K subscribers | 4,413 views | February 2, 2026[Transcript Excerpt]When we hear from Amazon and Google, which one is going to be the one that is more surprising or makes Wall Street happy? Corey, quickly to Kim's point about Google. You know, Google gets paid when people click on results. It doesn't get paid when it offers results, right? So think about that. Like the inefficiency of Google. We think of Google as this incredibly efficient thing. You can search for stuff and then find the thing that might give you the answer, but it doesn't give you the answer. They get paid for leading you in a direction that will cause you to click quite often, and it's been a discussion for a long time.
Google has done their best to sort of put this discussion down, but fundamentally, when they are giving answers on Gemini, they're not getting advertising revenue. And when they're giving answers on Gemini, they're not getting clicks that will lead people to other sites and make them maybe continue to search a little bit further. The efficacy of Gemini hurts their ability to gain money from advertising. And so I think it's not a coincidence that Google stopped giving us some of the very few metrics they used to give us about how many clicks they're getting or, well, they've never given us that number. They've given us the direction of the clicks and the change over time.
But I think that what we see here is while the advertising revenue per click has increased for Google and helped them grow their business, Kim's right. I mean, the threat from AI is a real problem. I mean, a very successful Anthropic, a very successful ChatGPT could be really bad news for Google, even if it's smaller as an end result.YouTube transcript reformatted at textformatter.ai.
[whoops, forgot this from the Bloomberg. snip] A new AI automation tool from Anthropic PBC sparked a $285 billion rout in stocks across the software, financial services and asset management sectors on Tuesday. The selloff started before the US market opened on Tuesday as traders pointed to a release on the Anthropic website as the reason behind steep declines in the shares of credit and marketing services company Experian, business and legal software maker RELX and the London Stock Exchange Group. Bloomberg Intelligence's Matthew Bloxham breaks down the situation. [/snip]
i wondered when investors would catch on to the fact that AI searching like Grok does renders Internet advertising compoletely moot ...
i almost never search anymore because it’s a complete waste of time compared to asking Grok precise questions, which of course completely bypasses all possibility of Internet advertising being seen, since Grok searches the web for you and then compiles the results in natural language ...
of course, some bias is still built into Grok, and Grok is only as good as the information available to search, so Grok’s gonna simply parrot the prevailing dogma of the day when subjects are nothing more than dogmatic opinion in the first place, though in those cases Grok will often [but not always] put forth the differing opinions ...
still, the bias isn’t Grok’s in those cases, but the bias built into the available data: IOW, garbage-in-garbage-out, so Grok’s dogmatic answers are no worse than manual searching, just faster ...
nonetheless, GOOGLE and all the rest of the “free” Internet services powered by ads are dead ... now that the public avalanche of recognition of this has finally started rolling down the hill, it wouldn’t surprise me if GOOGLE stock completely collapses in the next few weeks ...
Is openclaw.ai spooking the markets this morning?
My guess is, Google will adjust its model. Getting paid by the click was an effective strategy, and at the time they came up with it, was the only technically feasible way to monetize ‘free’ searches.
I tried looking up an unknown number in Brave the other day, and got a paragraphs-long lecture about the phone number’s associating with a bunch of Jews. AInti-semitism? So, ya gotta be cautious, as always.
I’ve been down to just one stock for better part of a year, and should rotated out and back in perhaps four times. It was up this week after earnings, and I plan to hop out of it before Friday.
If Google stock completely collapses in the next few weeks it will be party time.
i should add that i believe that a collapse of google is going to [needlessly] panic the market as a whole, so it’s likely the whole market will be significantly depressed as the herd rushes over the cliff ... this means that babies will be thrown out with the bathwater, and there will be excellent buying opportunities for the stout-of-heart, though NOT dead-cat bounce buys, but buying opportunities for genuinely valuable companies like the oil companies ...
“If Google stock completely collapses in the next few weeks it will be party time.”
yep ... those with cash and stout hearts can scoop up some of the babies what will be thrown out with the bathwater, and i don’t mean dead-cat-bounce buys of dead cats, but genuinely valuable companies like oil companies ....
It will also be the complete collapse of the old left wing journalism.
“My guess is, Google will adjust its model.”
the internet advertising model is dead because no one will look at the internet anymore because it’s a waste of time: they just ask AI searcher bots questions ...
Ooh, I just visited it, interesting idea. Of course, the testimonials may have been written by ‘bots, so...
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