Software Stocks Plunge 15% in Early 2026 Amid AI Disruption Fears
Software stocks have suffered their worst start to a year since 2022, with the sector dropping 15% in January following an 11% decline throughout 2025. The selloff was triggered by Anthropic's launch of Claude Cowork, an AI-powered productivity tool that has reignited investor concerns about technological disruption.
Tax preparation leader Intuit Inc. led the declines with a 16% weekly plunge, while Adobe Inc. and Salesforce Inc. each fell over 11%. Morgan Stanley data shows software-as-a-service companies have now erased nearly a quarter of their value since 2025 began.
The rapid development of Anthropic's AI tool - capable of converting screenshots to spreadsheets and compiling notes into reports - exemplifies the competitive threats reshaping the industry. Mizuho Securities analyst Jordan Klein observes entrenched bearish sentiment, noting "many buysiders see no reasons to own software no matter how cheap or beaten down the stocks get."