Story perspectives

Software Stocks Plunge 15% Amid AI Competition Concerns

1/19/2026

Summary

Story summary

Software stocks started 2026 poorly, down 15% in software-as-a-service stocks—the worst since 2022.
Intuit, Adobe, and Salesforce have seen substantial drops in stock value.
Analysts express concerns about uncertain growth prospects due to AI competition.
Goldman Sachs suggests rising AI adoption could eventually benefit software companies.
Nevertheless, many investors remain cautious, with some analysts recommending selective investments rather than a strong buy.

1 of 1

Story summary

Software stocks started 2026 poorly, down 15% in software-as-a-service stocks—the worst since 2022.
Intuit, Adobe, and Salesforce have seen substantial drops in stock value.
Analysts express concerns about uncertain growth prospects due to AI competition.
Goldman Sachs suggests rising AI adoption could eventually benefit software companies.
Nevertheless, many investors remain cautious, with some analysts recommending selective investments rather than a strong buy.