'No Reasons To Own': Software Stocks Sink on Fear of New AI Tool (bloomberg.com)
(Thursday January 22, 2026 @05:40PM (msmash)
from the tough-luck dept.)
The new year was supposed to bring opportunities for beaten-down software stocks. Instead, the group is [1]off to its worst start in years . From a report:
> The release of a new artificial intelligence tool from startup Anthropic on Jan. 12 rekindled fears about disruption that weighed on software makers in 2025.
>
> TurboTax owner Intuit tumbled 16% last week, its worst since 2022, while Adobe and Salesforce, which makes customer relationship management software, both sank more than 11%. All told, a group of software-as-a-service stocks tracked by Morgan Stanley is down 15% so far this year, following a drop of 11% in 2025. It's the worst start to a year since 2022, according to data compiled by Bloomberg.
>
> While unproven, the tool represents just the type of capabilities that investors have been fearing, and reinforces bearish positions that are looking increasingly entrenched, according to Jordan Klein, a tech-sector specialist at Mizuho Securities. "Many buysiders see no reasons to own software no matter how cheap or beaten down the stocks get," Klein wrote in a Jan. 14 note to clients. "They assume zero catalysts for a re-rate exist right now," he said, referring to the potential for higher valuation multiples.
[1] https://www.bloomberg.com/news/articles/2026-01-18/-no-reasons-to-own-software-stocks-sink-on-fear-of-new-ai-tool
> The release of a new artificial intelligence tool from startup Anthropic on Jan. 12 rekindled fears about disruption that weighed on software makers in 2025.
>
> TurboTax owner Intuit tumbled 16% last week, its worst since 2022, while Adobe and Salesforce, which makes customer relationship management software, both sank more than 11%. All told, a group of software-as-a-service stocks tracked by Morgan Stanley is down 15% so far this year, following a drop of 11% in 2025. It's the worst start to a year since 2022, according to data compiled by Bloomberg.
>
> While unproven, the tool represents just the type of capabilities that investors have been fearing, and reinforces bearish positions that are looking increasingly entrenched, according to Jordan Klein, a tech-sector specialist at Mizuho Securities. "Many buysiders see no reasons to own software no matter how cheap or beaten down the stocks get," Klein wrote in a Jan. 14 note to clients. "They assume zero catalysts for a re-rate exist right now," he said, referring to the potential for higher valuation multiples.
[1] https://www.bloomberg.com/news/articles/2026-01-18/-no-reasons-to-own-software-stocks-sink-on-fear-of-new-ai-tool