Renewed fears of the AI revolution hurting software (SaaS) stocks sent Oracle (ORCL) and Palantir (PLTR) lower. Shares fell by 4.7% and 3.77% on Tuesday, respectively.
Anthropic, which offers solid AI chatbot technology, is comparable to that of Alphabet’s (GOOG) Gemini. Markets feared that Anthropic and Amazon’s (AMZN) AWS are new threats to Palantir. Oracle relies on AI demand to sell server solutions.
Anthropic said that the Claude AI assistant has the capability of controlling computers to complete tasks. IT may open apps and even browse on the web and enter information on spreadsheets. The news hurt Microsoft (MSFT) stock, too. Office 365 sales rely on customers dependent on Excel.
SaaS names that fell on Tuesday included Intuit (INTU), ServiceNow (NOW), Uber (UBER), Salesforce (CRM), and Autodesk (ADSK).
Adobe Systems (ADBE) fell by 3.54%, closing at a 52-week low. Markets are convinced that Adobe’s image and video editing tools cannot compete effectively with AI. Still, corporations did not yet use AI chatbots exclusively to generate content for advertising. However, advertising companies like Trade Desk (TTD) and Applovin (APP) pulled back, too.
Advertising agency Omnicom Group (OMC) is also off by 13.5% from its 52-week high. The shake-up in the ad space is underway. AI is leading that disruption.
Investors might consider AI firms from China like Baidu (BIDU) and Alibaba (BABA). However, their high costs in AI limit the near-term profit potential.
