Software stocks post best month since 2001 as AI fears flip to AI excitement — ride the rally on ServiceNow and Snowflake
Software stocks just completed their best monthly rally in over two decades. The panic that AI would destroy software companies has completely reversed — now investors see AI as a growth engine for the industry.
Idea
For most of the past year, investors treated software companies like dead money, fearing AI would make them obsolete — dubbing it the 'SaaSpocalypse.' That narrative has dramatically reversed. Snowflake and Okta just posted record stock jumps on strong earnings powered by AI integration, and ServiceNow is up 40% in a single month. When an entire sector goes from widely hated to catching a bid this strong, institutional money is often still in the early stages of repositioning back in, which means the rally can keep running even after a big month.