Israel software company JFrog (Nasdaq: FROG) saw its share price fall 24.94% on Friday after Anthropic launched Claude Code Security.
JFrog, led by cofounder and CEO Shlomo Ben Haim, provides software development solutions. Anthropic announced on Friday a new security tool in its Claude large language model — Claude Code Security. The tool is designed to detect security vulnerabilities, validate findings, and recommends patches that through human activity rather than AI can be reviewed and approved. The launch has increased concerns in the market that AI tools could replace existing solutions, such as those of JFrog. In response to the launch, a long list of cybersecurity stocks fell including SentinelOne (NYSE: S), down 4.35% and Varonis (Nasdaq: VRNS), down 7.68%.
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Investment bank Jefferies stock analyst Joseph Gallo wrote in response that he still believes that the cybersecurity field will be among the winners in the AI era, but estimated that «headwinds will increase before there is clarity regarding the impact of AI on cybersecurity.»
JFrog was one of the strongest Israeli stocks on Wall Street in 2025, when it jumped 112%. However, since the beginning of 2026, it had weakened by 19.5% even before Friday’s fall and has now lost 39.6% since the start of the year, wiping almost $3 billion off its market cap, which is now $4.5 billion.
Following the decline in JFrog’s stock, Yahoo Finance quoted the response of investment bank Raymond James, which claims the decline in its stock has been exaggerated. In their assessment, this is a short-term risk that does not affect the company’s strategic position, and they remain positive on it, among other things, because of its foresight and the resilience of its platform.
Published by Globes, Israel business news — en.globes.co.il — on February 22, 2026.
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