February 2, 2026
AI ate my portfolio
Why software stocks are getting pummelled
Stocks plunge, commenters feud: AI panic or overhyped drama
TLDR: Big software names tumbled after SAP warned growth may slow, sparking a fresh scare that artificial intelligence will undercut subscription software. Commenters split: bears say AI kills moats and margins; others call the panic overblown and argue it's still cheaper to buy software than build it.
Wall Street screamed 'bloodbath' after SAP warned a slight slowdown in cloud growth for 2026. Its stock plunged 15%, ServiceNow fell 13% despite beating sales forecasts, and Salesforce and Workday slipped too. But the real show was the comment section.
One commenter rolled their eyes: 'Pummelled' is sensational; a big tech index (QQQ) is up 20% and Google is up 70% in a year. Others brought out the doom posters: AI will make software easy to churn out, killing protective moats and fat profits — 'the game is up for pure SaaS,' warned llmslave. SaaS means paying a monthly subscription for software you use online.
The pragmatists clap back: even with AI, building and running your own apps is messy and expensive; 'cheaper to pay a small monthly fee,' argued lateforwork. Then dheera dropped a spicy truth bomb: 'Losing money was a choice,' claiming nervous traders caused the very selloff they’re crying about. Meanwhile, ciconia posted the receipts.
Fans joked the market was doing an 'AI vibe check,' while skeptics called the headline clickbait. Is AI the villain or just the scapegoat? The crowd is split — half pricing in an AI apocalypse for software margins, half rolling their eyes and snagging bargains.
Key Points
- •On January 29, SAP forecast a slight deceleration in its cloud business for 2026 during its earnings call.
- •SAP’s share price fell 15% following the guidance.
- •ServiceNow’s stock dropped 13% despite quarterly revenue exceeding analyst expectations.
- •Salesforce’s shares fell 7% and Workday’s fell 8% without issuing new company-specific news.
- •The article frames the sell-off within concerns about whether AI-related risks are being overestimated.