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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InThe Software-as-a-Service (SaaS) sector is facing a historic downturn, with the iShares Expanded Tech-Software Sector ETF (IGV) plunging nearly 30% from its September 2025 peak. Between mid-January and mid-February 2026, approximately $1 trillion in market value was erased from software companies globally. This massive sell-off marks the worst monthly performance for the S&P North American Software Index since the 2008 financial crisis. Investors are increasingly concerned that autonomous AI agents from firms like OpenAI and Anthropic will render traditional enterprise software obsolete. The shift threatens the long-standing per-seat subscription model as AI agents begin to automate complex knowledge work and custom application development. Major industry players, including Salesforce, Adobe, and Workday, are under intense pressure as the market undergoes a fundamental structural revaluation.