Shares of JFrog (FROG) plunged 24.94% Friday after Anthropic announced its Claude Code Security tool. Investors fear AI-driven code analysis could reduce demand for JFrog's downstream package-level security and curation products, potentially disrupting its growth model.

Analysts at Raymond James maintain an Outperform rating, arguing the sell-off is excessive. They contend JFrog operates at a critical artifact and package layer that large enterprises still require for governance, a distinct control point from Anthropic's code-review focus. The firm points to security accounting for 16% of FY25 Remaining Performance Obligations, supporting a projected floor of 50% year-over-year Security ARR growth.

With an Enterprise Value of $4.4 billion, JFrog is projected by analysts to generate $626 million in 2026 revenue and $0.90 in Non-GAAP EPS. Raymond James asserts the market is overextrapolating Anthropic's current capabilities, and that JFrog's core binary management platform remains resilient, making the sharp pullback a potential buying opportunity for growth investors.