Fears of AI disruption have caused a sell-off in software stocks, with Axon down 50% and Atlassian down 70%. The panic was triggered by imperfect earnings reports from leaders like Microsoft and ServiceNow, and Anthropic’s release of Claude Cowork, a tool for creating customizable software easily. Software stocks are starting to recover after the sell-off, but not all are worth buying. Axon Enterprise, a hardware and software company for law enforcement, is down but still a top stock with strong growth potential. On the other hand, Atlassian, a collaboration software maker, is down 72% and faces challenges from AI disruption and lack of profitability. Investors should consider these factors before buying stock in Axon Enterprise.

Read more at Nasdaq: Software Bear Market: 1 SaaS Stock To Buy Now, 1 To Avoid