Software stocks have sold off on fears AI could eat into so-called software as a service, or SaaS, business models.

IBM shares tumbled after Anthropic unveiled a tool aimed at business that use a decades-old programming language

While Palantir's extreme valuation -- a forward P/E ratio of 110 and a price-to-sales ratio of 75 -- is eye-watering, BigBear.ai is a penny stock at this point, subject to extreme volatility and potential risk. I would rather have a stock with a solid growth curve, even at an extreme valuation, than one that is barely treading water.

Cybersecurity stocks are the latest to see sell-off pressure as AI threatens to upend software companies.

DoorDash shares fell 7% on Monday, while Uber dropped 3%, Salesforce declined 5%, MongoDB and AppLovin slid 8%, and ServiceNow lost 4%, following publication of a dystopian scenario analysis from Citrini Research examining potential risks from rapid AI advancement.

Agentic AI may become the next big AI supercycle. UiPath looks uniquely positioned to be a winner in this AI niche. 10 stocks we like better than UiPath › The driving theme in the stock market over the past few years has been artificial intelligence (AI).

In recent weeks, a range of large “software-as-a-service” companies, including Salesforce, ServiceNow and Oracle, have seen their share prices tumble. Even if you’ve never used these companies’ software tools,

This stock genuinely offers investors an opportunity to buy into a growth story at a very reasonable valuation.

The company, which got its start making powerful command line terminal software, has expanded to a platform for controlling coding agents. Warp, which builds software to help developers control AI agents and other software from the command line,