SaaS Disruption Debate Intensifies as Software Stocks Extend Losses, Analysts Push Back

Summary

The sell-off in software and professional services stocks continued on February 12, with the S&P 500 Software & Services Index down approximately 20% year-to-date after an eight-session losing streak. The rout was triggered by Anthropic's Claude Cowork plugins released the prior week, which demonstrated AI capabilities that directly compete with functions sold by major SaaS and data analytics providers. Thomson Reuters fell nearly 18% in a single session, LegalZoom dropped nearly 20%, and double