AI Disrupts Software: The Struggle of SaaS Stocks
When even industry giants like Microsoft stumble, it signals a major shift in the software sector. With stocks plummeting, here’s what you need to know:
- Market Trends: Microsoft, along with other software leaders (Oracle, Adobe, Salesforce), experiences significant drops in value—some down as much as 50% in 2026.
- AI’s Impact: The narrative “AI eats software” highlights fears of productivity surging at the expense of traditional revenue models like seat-based subscriptions.
- Investor Sentiment: Analysts question the future of software companies as they transition from a per-user to a per-outcome model. Many investors are hesitant, citing lack of catalysts for growth.
As the software landscape undergoes its most significant transformation since the cloud era, opportunities may arise for savvy investors.
Join the conversation! What are your thoughts on AI’s impact on software business models? Share your insights below!
