Tech billionaire Shlomo Kramer: the cyber selloff proved that Wall Street can’t price tech anymore

Core Insights - Anthropic launched Claude Code Security, an AI-powered code-scanning tool, leading to significant declines in cybersecurity stocks, with CrowdStrike down 10%, Zscaler down 11%, and Okta down 9% [1] - The market reaction suggests a misunderstanding of the relationship between AI and cybersecurity, treating them as interchangeable, despite their distinct disciplines [2][3] - The public markets are structured around generalists, which is increasingly inadequate as technology sectors become more specialized [5][6] Industry Dynamics - Cybersecurity encompasses various disciplines such as endpoint protection, identity access management, and application security, each with unique architectures and economics [4] - The current model of portfolio management in public markets fails to recognize the specialization required to accurately value different tech sectors [6][7] - The AI narrative is complicating market perceptions, with a significant gap between market pricing and actual impacts of AI on productivity and employment, as evidenced by a survey indicating over 80% of executives reported no measurable impact from AI in the past three years [8]