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‘SaaSpocalypse’ debate intensifies as software stocks swing wildly

News | 2026/08/07 20:22

‘SaaSpocalypse’ debate intensifies as software stocks swing wildly

Software stocks experience massive swings as investors try to gauge AI's impact

The past week saw massive moves in both directions for software stocks, as investors try to figure out which names are best insulated from artificial intelligence.

Airtable, a one-time highflyer among cloud software startups, agreed to be acquired for about one-tenth of its peak valuation.

While HubSpot and Datadog tumbled after their earnings reports, Atlassian and Twilio saw historic pops, reviving confidence in parts of the sector.

As a result, Wall Street was reminded that there's still juice left in an industry that, not long ago, was viewed as driving innovation.

Atlassian, which sells collaboration tools, and Twilio, a provider of cloud-based communications software, each saw pops of well over 20% on Friday after reporting quarterly results.

Atlassian CEO Mike Cannon-Brookes credited his company's research and development teams for working hard to give customers the best quality, price, and speed.

Atlassian's 35% surge on Friday marked one of the best days in the company's history.

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