Finance
Software stocks in Europe fall on concerns over AI pitfalls
Published by Global Banking & Finance Review®
Posted on August 12, 2025
1 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 12, 2025
1 min readLast updated: January 22, 2026
European software stocks, including SAP, fell due to AI concerns, mirroring U.S. declines. Major players like Dassault Systemes and Sage also saw drops.
MILAN (Reuters) -Software stocks in Europe fell sharply on Tuesday, with heavyweight SAP sliding more than 6% amid concerns over the risks that artificial intelligence could pose to this part of the technology sector.
SAP was briefly set for its biggest one-day drop since October 2020 and was last down 5.5%. Meanwhile, Dassault Systemes, Sage and Nemetschek fell between 4% and 10%, making tech the worst-performing sector in Europe.
One trader said the selloff mirrored declines among U.S. peers such as Adobe, Salesforce, Intuit and Workday on Monday, following a MarketWatch article that looked into the potential impact of AI on software companies, in particular.
On Monday, Melius Research downgraded Adobe to sell.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn like humans. AI can perform tasks such as problem-solving, understanding language, and recognizing patterns.
Software stocks are shares in companies that develop and sell software products or services. These stocks can be influenced by technological advancements, market demand, and competition within the software industry.
A market selloff occurs when a significant number of investors sell their securities, leading to a rapid decline in stock prices. This can be triggered by various factors, including economic concerns or negative news.
The technology sector includes companies that produce technology products or provide technology-related services. This sector encompasses a wide range of industries, including software, hardware, and telecommunications.
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