Goldman Sachs warns the Great Software Stock Rout of 2026 is just the beginning, drawing parallels to the newspaper industry’s decline in the early 2000s. Share price stability hinges on earnings outlook in the face of AI disruption, with software stocks like Salesforce and SAP at risk.

Anthropic’s AI plug-ins debut sparked a software rout, automating tasks across legal, sales, marketing, and data analysis. Shares of Thomson Reuters, PayPal, and Expedia Group subsequently crashed, with software stocks underperforming the Nasdaq Composite by the largest margin this century.

Big software names like Oracle and Salesforce have seen significant declines. Figma, which IPO-ed in 2025, has cratered 41% this year. Evercore analyst Kirk Materne notes that software tends to outperform the S&P once it finds a bottom, but shifting sentiment remains uncertain amid AI disruption.

Read more at Yahoo Finance: Goldman issues a blunt warning to beat-up software stock investors