Why are software stocks… collapsing?
We’re talking about losses of hundreds of billions. And the reason? Artificial intelligence.
And I’m not talking about simple LLMs you just chat with… I’m talking about real AI agents that can actually do our jobs on their own.
So today I want to break down exactly what’s going on and why the markets are getting spooked.
Let’s dive in.
WHAT HAPPENED IN THE MARKET
Over the past few days, I’ve seen software stocks take a serious hit. The entire sector dropped more than 3% in a single day, while companies like UiPath and HubSpot fell more than 9%.
So you might be thinking… “okay, what happened this time?”
The answer is Amazon.
From what I’m seeing, Amazon through Amazon Web Services is developing AI agents that can automate work in areas like sales, business development, and technical support.
In other words… jobs that until now were done by people… and software tools.
And it doesn’t stop there. These tools seem capable of replacing the workload of thousands of employees.
That’s the moment I think the market panicked. Because suddenly, this isn’t just about “productivity gains”… it’s about replacement.
THE ERA OF AI AGENTS
This is where things get really interesting.
Up until now, I was using software like everyone else. Logging in, clicking buttons, following workflows.
Now? I can just give a command.
For example, Anthropic announced that Claude can actually use my computer.
Yes, literally.
It can open apps, browse the web, fill spreadsheets, send emails.
In one demo I saw, a user asked Claude to export a presentation as a PDF and send it in a meeting invite.
And it did everything… on its own. No clicks.
At the same time, tools like OpenClaw are going viral because they do the same thing through apps like WhatsApp or Telegram.
I just send a message… and the AI executes the task.
So in a way, I don’t even need traditional software anymore. Just AI.
THE “SaaS APOCALYPSE”
And this brings me to what people are calling the “SaaS apocalypse”.
A potential collapse of the software-as-a-service model.
Because up until now, I was paying subscriptions per user.
But if one AI can do the work of 5 people… why would I pay for 5 licenses?
And even more importantly… why would I pay for software at all if AI can handle everything?
That’s where the panic really starts to make sense to me.
Companies are already starting to cut tools, consolidate platforms, and look for real ROI. And of course, they’re shifting toward AI-first products.
The result?
We’re talking about $300–400 billion disappearing from the sector.