Software stocks plunged into a steeper decline on Thursday amid investor concerns that AI might reshape the business models of a large number of companies.

The iShares Expanded Tech-Software Sector ETF (IGV.US) dived by over 6% in early trading. According to CNBC, it has dropped by more than 20% from its recent peak, signaling that the software sector has indeed entered a bear market.

Enterprise software company ServiceNow (NOW.US) also saw its stock price plummet by 12% on Thursday. Morgan Stanley analysts described ServiceNow's performance as decent but insufficient.

In a highly cautious environment for existing application software providers, the analysts stressed that stable growth that meets expectations may not be enough to change market perceptions.
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AAStocks Financial News
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