Software stocks declined on Friday, extending a recent period of weakness as the sector approaches its longest losing streak in approximately two decades.
The iShares Expanded Tech-Software Sector ETF fell about 1% in New York. A close lower today would mark its ninth consecutive daily decline—the longest such streak since a nine-day run ending in June 2006.
This ETF, a common benchmark for the software industry, has dropped more than 16% over the past nine sessions. This further signals a sustained erosion of market confidence in the sector, driven by concerns over AI-related disruption.
Adobe Inc served as the latest catalyst for the sector's weakness. Analysts said the company's results heightened market fears about AI's impact on its future growth. Consequently, shares of the software maker for creative professionals fell 7.7% on Friday. The company also announced its chief financial officer is departing, following the resignation of its chief executive officer earlier this year.
Additionally, Oracle Corporation shares fell 1.6%, continuing their post-earnings weakness. The stock is headed for a sixth straight daily decline, with a cumulative drop of 23%.
Among other declining stocks, Microsoft Corporation fell 1.9%, Palantir Technologies Inc. dropped 2.3%, Intuit Inc. declined 2.5%, Salesforce Inc. slipped 1.6%, and Autodesk Inc. fell 3.1%.
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