Software Stocks Plunge as AI Fears Trigger Desperation

Concerns that AI agents could take over traditional software have led to a sharp decline in software stock prices. Executives are now resorting to buybacks, rebrands, and even AI-generated versions of themselves to win back investor confidence.

The central worry is that customers will abandon expensive enterprise suites in favor of AI-driven tools, a fear that has pushed down valuations across the sector. Salesforce's Marc Benioff called the selloff a 'market panic,' while ServiceNow's Bill McDermott told analysts, 'You can give us back the market cap.'

Salesforce has spent billions on buybacks, and Adobe has poured nearly $16 billion into buybacks over the past year. Workday brought back its co-founder as co-CEO.

Analyst Rishi Jaluria described these moves as 'a clear sign of desperation,' while Citigroup's Tyler Radke added that investors want to see real numbers, not theatrical gestures.