Software stocks in Europe fall on concerns over AI pitfalls
FILE PHOTO: A logo on the SAP exhibition space at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022. REUTERS/Benoit Tessier/File Photo
MILAN :Software stocks in Europe fell sharply on Tuesday, with heavyweight SAP sliding more than 6 per cent 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 per cent. Meanwhile, Dassault Systemes, Sage and Nemetschek fell between 4 per cent and 10 per cent, 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.
