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Cloud Stocks Plummet Amid AI Integration Concerns

1/23/2026

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Story summary
  • The WisdomTree Cloud Computing Fund fell over 8% at the start of 2026, signaling a cloud stock selloff.
  • Salesforce and ServiceNow declined more than 14%, reflecting broad weakness among major cloud software companies.
  • Analysts say artificial intelligence could displace traditional software roles, and firms lacking AI integration may need acquisitions.
  • Salesforce CEO Marc Benioff said that despite strong quarterly results, market expectations remain high for AI developments.