US software stocks sank further Tuesday on swelling investor fears that new AI tools will eat their lunch.
The selloff came after AI startup Anthropic unveiled new tools that can automate legal, sales, and marketing tasks — potentially disrupting fields that were once seen as beneficiaries of the AI boom. Some of the hardest-hit companies were those with large analytics businesses, like Thomson Reuters, which owns a legal database.
Even stocks of software-adjacent firms, including video game and advertising businesses, have been hit. Sentiment around software has gone “from bearish to doomsday,” Bloomberg wrote.
