Software Stocks Lose Value Amid AI Threats

Software stocks plunged over the last month as investors worry AI could displace vertical SaaS vendors, wiping more than $730 billion from Adobe, Microsoft, Salesforce, SAP, ServiceNow and Oracle combined as of this week. The iShares Expanded Tech Software ETF fell 19% month-over-month and Microsoft lost over $450 billion by Feb. 3, prompting debate over whether AI agents will replace SaaS stacks.