Software stocks are tanking market again
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Range reports AI fears have shifted from tech to the economy, causing a sell-off in various sectors as investors assess AI's disruptive potential.
Software stocks have sold off on fears AI could eat into so-called software as a service, or SaaS, business models.
Another day, another sharp sell-off in software stocks. The sector has become a popular lightning rod for tech bearishness.
Anthropic (ANTH.PVT) is showing investors that artificial Intelligence (AI) isn't about replacing software. Yahoo Finance Technology Editor Dan Howley joins Yahoo Finance host Josh Lipton to discuss the company's new partnerships and plugin features that integrate its AI tools with apps like Google's Gmail (GOOG,
Anthropic on Tuesday unveiled new details of how businesses could use its Claude Cowork AI software to access and use data stored in enterprise apps, including DocuSign, LegalZoom and Salesforce. Given the recent market jitters about the disruptive impact of AI on these software firms,
While Palantir's extreme valuation -- a forward P/E ratio of 110 and a price-to-sales ratio of 75 -- is eye-watering, BigBear.ai is a penny stock at this point, subject to extreme volatility and potential risk. I would rather have a stock with a solid growth curve, even at an extreme valuation, than one that is barely treading water.
A Citrini Research report that warned of a doomed economy due to AI has been partially blamed for a sell-off in software and payments stocks on Monday. Citrini's “Global Intelligence Crisis” report has amassed over 22 million views on X alone,
"On Monday, software stocks suffered from an ‘AI dystopia’ narrative," Luke Kawa, markets editor at Sherwood News, told Investing.com.
IBM still profits from mainframes running decades-old COBOL systems. Anthropic says AI can migrate that software elsewhere.
European stocks were broadly lower on Tuesday as investors assessed the new global trading landscape after President Donald Trump's tariffs move.