Software stocks in Europe fall on concerns over AI pitfalls
SAP was briefly set for its biggest one-day drop since October 2020 and was last down 5.5%. Meanwhile, Dassault Systemes (DAST.PA), opens new tab, Sage (SGE.L), opens new tab and Nemetschek (NEKG.DE), opens new tab fell between 4% and 10%, making tech (.SX8P), opens new tab the worst-performing sector in Europe.
One trader said the selloff mirrored declines among U.S. peers such as Adobe (ADBE.O), opens new tab, Salesforce (CRM.N), opens new tab, Intuit (INTU.O), opens new tab and Workday (WDAY.O), opens new tab on Monday, following a MarketWatch article, opens new tab that looked into the potential impact of AI on software companies, in particular.
On Monday, Melius Research downgraded Adobe to sell.
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