Software stocks in Europe fall on concerns over AI pitfalls
Impact of AI on Software Stocks
MILAN (Reuters) -Software stocks in Europe fell sharply on Tuesday, with heavyweight SAP sliding more than 6% amid concerns over the risks that artificial intelligence could pose to this part of the technology sector.
Major Players Affected
SAP was briefly set for its biggest one-day drop since October 2020 and was last down 5.5%. Meanwhile, Dassault Systemes, Sage and Nemetschek fell between 4% and 10%, making tech the worst-performing sector in Europe.
Market Comparison with U.S. Peers
One trader said the selloff mirrored declines among U.S. peers such as Adobe, Salesforce, Intuit and Workday on Monday, following a MarketWatch article that looked into the potential impact of AI on software companies, in particular.
Analyst Downgrades
On Monday, Melius Research downgraded Adobe to sell.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
