Saad Ullah
⬤ Markets are increasingly worried that artificial intelligence might shake up the software industry, leading to a widespread selloff across the sector. A recent visual showing "Software stocks: Drawdown from 52-week highs" reveals just how dramatically sentiment has shifted, with most major players now trading well below their recent peaks.
⬤ Several big-name software companies have dropped roughly a quarter from their highs. Rubrik (RBRK) and Veeva Systems (VEEV) are both down about 26%, while Adobe (ADBE) and Salesforce (CRM) sit near 28% below their peaks. Zscaler (ZS) has fallen approximately 36%, showing how AI uncertainty is hitting both application software and cybersecurity stocks hard.
⬤ The damage runs even deeper for some companies. Atlassian (TEAM) has tumbled around 52% from its high, while Duolingo (DUOL) has dropped roughly 65%. Ad tech company The Trade Desk (TTD) is down near 68%, and Figma (FIG) around 69%. These numbers show how AI disruption fears are affecting all types of software businesses, regardless of how established they are.
⬤ Not all software companies face the same risks from AI. Those that control valuable data, own critical workflows, and are deeply integrated into customer operations may actually benefit over time. Meaningful AI-driven revenue won't appear overnight—2026 could be when the real impact becomes clear for the sector.
Saad Ullah
