# Software stocks post best month since 2001 as 'AI will kill us' narrative flips — ride the momentum

_AI-generated trading idea · LONG · NOW, OKTA, SNOW_

> Canonical page: https://commonquant.ai/research/for-you/software-stocks-post-best-month-since-2001-as-ai-will-kill-u--54f43eb4-7c31-4165-8420-fbdbfbb70662

Software stocks just had their best month in over two decades. Investors had feared AI would wipe out software companies, but now earnings from companies like Snowflake and Okta show AI is actually driving more demand for their products.

## Idea

Earlier this year, a narrative called the 'SaaSpocalypse' convinced many investors that AI would make traditional software companies irrelevant. That fear caused a deep selloff. But now earnings are telling the opposite story — Okta reported surging demand for its AI-powered identity products, Snowflake saw record stock gains on its AI strategy, and ServiceNow is up 40% in a single month. When a widely-believed fear gets debunked this decisively, it often fuels an extended rally as holdouts gradually capitulate and buy back in. We're still early in that process.

## Key details

- Symbols: NOW, OKTA, SNOW
- Timeframes: daily
- Tags: \#momentum, \#software, \#ai

## Community

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## News sources

- [ServiceNow's stock soars toward historic month as AI fears fade across software](https://www.marketwatch.com/story/servicenows-stock-soars-toward-historic-month-as-ai-fears-fade-across-software-31854b69?mod=mw_rss_topstories) — MarketWatch
- [Okta Stock Surges On Earnings Beat As AI Drives Identity Product Demand](https://www.investors.com/news/technology/okta-stock-okta-earnings-news-q12026/?src=A00220&yptr=yahoo) — Investor's Business Daily
- [Software stocks wrap up best month since 2001 as talk of 'SaaSpocalypse' subsides](https://www.cnbc.com/2026/05/29/software-stocks-wrap-best-month-since-2001-as-talk-of-saaspocalypse-.html) — CNBC

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