Software stocks wrap up best month since 2001 as talk of ‘SaaSpocalypse’ subsides
The ETF rose 8% this week and closed May up 21%, as Snowflake and Okta fueled a broad rally in software shares.
- The iShares Expanded Tech-Software ETF rose about 35% from its April low, with traders heavily buying call options, signaling strong bullish sentiment in software stocks.
- Snowflake's stock surged approximately 35% after reporting a growth in AI accounts and an increase in product revenue, sparking a broader rally in software companies including ServiceNow, Palantir, Oracle, and Microsoft.
- The selloff termed the 'SaaSpocalypse,' which wiped out about $2 trillion from software market values due to AI fears, is subsiding as results show AI is driving more workloads on existing platforms rather than displacing them.
- Workday's stock remains down around 36.7% year-to-date despite some recent gains, reflecting ongoing volatility and investor caution amid market uncertainty about its outlook and AI-related restructuring concerns.
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Snowflake Earnings Spark Broad Software Rally, Lifting Workday And Doximity Shares
A surge in Snowflake’s stock following strong earnings results triggered a broad rally across software names, challenging the prevailing narrative that AI would destroy the SaaS sector. Snowflake jumped 35% in a single session, its best single-day performance ever, after reporting that AI accounts on its platform grew from 9,100 to 13,600 in one quarter. Product revenue grew 34% and Snowflake raised its full-year guidance by $180 million, sendin…
Software stocks wrap up best month since 2001 as talk of ‘SaaSpocalypse’ subsides
In this article IGV SHOP SNOW OKTA Follow your favorite stocksCREATE FREE ACCOUNTSridhar Ramaswamy, CEO of Snowflake, helps ring The Closing Bell at the New York Stock Exchange on Sept. 30, 2025. NYSE The “SaaSpocalypse” may not be over. But for now at least, fears of software’s demise have cooled. Software stocks soared this week, driven by strong results from Snowflake and Okta, signaling that some companies are navigating their way through a…
Software Stocks Surge After SaaSpocalypse - PressReach
The software sector has recently experienced its most significant growth since 2001, defying earlier apprehensions about a potential market downturn often referred to as the ‘SaaSpocalypse.’ The term emerged amid concerns that the rapid expansion and high valuations in the software industry could lead to a severe market correction. However, recent trends have showcased a robust recovery, much to the relief of investors and industry experts. Lead…
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