Don't Believe the Hype: This Stock Could Survive the "SaaSpocalypse"

2026-02-14 11:46:00 ET

One of the biggest stories in the technology sector in 2026 is the "SaaSpocalypse." This broad tech stock sell-off has been hitting well-known software-as-a-service (SaaS) companies like Salesforce , Adobe , and Microsoft .

Investors fear that powerful new artificial intelligence (AI) tools could disrupt the enterprise software industry. The premise is simple: Companies won't need to buy as much software or subscribe for as many seat licenses as they used to because they can create their own software with AI, or use AI to produce similar results. If that's true, software companies are about to become a lot less profitable.

As a result, the iShares Expanded Tech-Software Sector ETF is now down 20% from where it traded a year ago, even as the tech-heavy Nasdaq-100 index is up 16%.

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