Top stories - Google NewsSoftware stocks enter bear market on AI disruption fear with ServiceNow plunging 12% - CNBC
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Wall Street has been skeptical about software stocks for a while, but sentiment has gone from bearish to doomsday lately with traders dumping shares of companies across the industry as fears about the destruction to be wrought by artificial intelligence pile up. The anxiety was underscored Tuesday after AI startup Anthropic released a productivity tool for in-house lawyers, sending shares of legal software and publishing firms tumbling. “We call it the ‘SaaSpocalypse,’ an apocalypse for software-as-a-service stocks,” said Jeffrey Favuzza, who works on the equity trading desk at Jefferies. “Trading is very much ‘get me out’ style selling.” Bloomberg Intelligence Senior Global Head of Technology Research Mandeep Singh joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. (Source: Bloomberg)
The prospect of disruptions from artificial intelligence has hung over the economy for years. But this week advances in software tools precipitated a sell-off on Wall Street.
Latest NewsFeb 5 : Software and data services stocks stabilized on Thursday after a bruising selloff, as investors looked for clues on whether fast-advancing artificial intelligence tools are starting to dent demand for traditional software and subscription businesses.ServiceNow gained 0.7 per cent, Salesforce added 0.1