Investing.com – Concerns about the impact of artificial intelligence on these businesses caused shares of European software companies, particularly SAP (ETR:SAPG) and Sage Group (LON:SGE), to fall on Tuesday.
In mid-afternoon deadmaking in Europe, SAP’s stock price slumped by as much as 4.7%, falling to its lowest level since April. Sage lost 5.4%, as did Nemetschek (ETR:NEKG), Dassault Systemes (EPA:DAST), and Sinch (ST:SINCH), all of which lost more than 7%.
UBS covered a basket of these stocks that fell by about 3%.
A recent downgrade of Adobe (NASDAQ:ADBE) by Melius Research, in which analysts argued that the nascent technology could pose a threat to the Photoshop-maker, exacerbated concerns about AI-fueled headwinds, according to Bloomberg News.
Meanwhile, these fears were fanned even further by results from Monday.com (NASDAQ:MNDY). The software company predicted revenue of $311 million to $313 million for the current quarter, which was lower than Wall Street’s midpoint projections and overshadowed better-than-expected results for the second quarter.
In a note, analysts at Jefferies stated that some investors are concerned about the long-term effects of AI on the “entire apps software space” because of the nearly 30% drop in the company’s shares on Monday. They maintained that these concerns are “overblown.”
Tuesday’s premarket U.S. trading saw a slight increase in Monday.com shares.