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00:02The software sector is undergoing a correction as AI threatens the SaaS business model,
00:07according to Benzinga. Salesforce and Adobe are posting their worst quarterly performance
00:11since 2008, with shares down 26% and 29.7%. Investors are concerned that AI tools can
00:20automate functions handled by SaaS platforms, reducing their value and revenue streams.
00:25Generative AI can generate code, write marketing copy and create visual content without subscriptions.
00:31Both stocks have breached key moving averages, signaling weaker momentum.
00:35The broader SaaS index and companies like Snowflake are also under pressure.
00:40The sector faces challenges from AI disruption fears, weaker technical setups and shifting
00:45valuation metrics as investors assess whether this is a deeper shift or a correction.
00:50For all things money, visit Benzinga.com.
