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A wave of 'AI panic' is hitting software stocks as investors fear that AI agents and coding assistants will dismantle the traditional per-seat SaaS business model. However, companies with proprietary data and AI-integrated platforms are emerging as resilient buys despite the broader market volatility.
Figma reported a strong quarterly revenue of $303.8 million, representing a 40% year-over-year increase, causing shares to rise in secondary and private markets. However, market analysts caution that the company faces significant long-term risks as generative AI threatens to automate core design workflows and disrupt its seat-based pricing model.
The cloud software sector is undergoing a valuation recalibration as Salesforce, Oracle, Adobe, and ServiceNow race to monetize generative AI. While Salesforce pivots toward autonomous agents with Agentforce, Oracle leverages its infrastructure dominance to capture enterprise AI workloads, creating a divergent landscape for investors.