SaaS Giants Plummet Up to 58% YTD as AI Sustainability Doubts Deepen; Analysts See Further Downside

According to MarketWatch, software stocks have plummeted significantly in 2026 as investor concerns about artificial intelligence have shifted focus. Intuit (INTU-US) has fallen 58% year-to-date, followed by HubSpot (HUBS-US) down 51% and Atlassian (TEAM-US) down 49%. The iShares Expanded Tech-Software ETF (IGV-US) declined approximately 11% over the past month.

José Torres, chief economist at Interactive Brokers, noted that the selling pressure stems from renewed worries about whether AI investments will deliver expected returns, a shift from early-year concerns about AI fully replacing SaaS. Microsoft (MSFT-US), which has invested heavily in the AI arms race, has lost 22% year-to-date. Mark Malek, chief investment officer at Siebert Financial, stated the sector faces further downside pressure and affirmed, "I don't think we've hit bottom yet," citing market doubts about the sustainability of AI-driven valuations.