Software Stocks in Freefall as AI Anxiety Deepens Selloff
AppLovin, Datadog, and Workday each plunge 7%+ as weeks-long software stock rout accelerates on AI fears.
The bleeding in software stocks got worse on Monday. A lot worse.
AppLovin, Datadog, and Workday all cratered more than 7% as a weeks-long selloff in the sector deepened. The catalyst? Growing unease about the existential threat AI poses to traditional software businesses.
Several of the hardest-hit names had already been flagged by research outlet Citrini before the drop accelerated. The Wall Street Journal's Jack Pitcher reported on the broader rout, which has hammered software names across the board.
This isn't a one-day blip. The selloff has been grinding for weeks now, and Monday's action suggests investors aren't done repricing the sector. The core fear is straightforward: if AI can automate what these companies sell, their growth stories start looking a lot less compelling.
No signs of a bottom yet.