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Oracle (NYSE:ORCL) dropped 5% in afternoon trading as Alphabet fell roughly 6% and Microsoft also declined. The entire communication-services and software complex moved lower together. Salesforce is down roughly 43% year-to-date, Adobe has fallen approximately 49% over the past year, and Accenture experienced a near-20% single-day drop the previous week after cutting its growth outlook and citing AI compressing demand for traditional IT services.
Why it matters
Investors fear that AI agents—software that can make decisions and complete tasks autonomously—will erode the subscription model that underpins enterprise software economics. The previous week's Accenture collapse, where the world's largest IT services firm signaled that AI is eating billable hours, reinforced the concern that software vendors whose products configure those hours face similar pressure. However, some analysts argue the selling has become indiscriminate; Salesforce carries the largest AI revenue line in its category and is acquiring usage-based billing platforms to monetize AI agent actions rather than seats.
What to watch
The key question is whether these companies can prove that AI revenue scales faster than it erodes the legacy subscription base. Until they demonstrate this on their income statements, software stocks may remain under pressure even when the rest of tech celebrates gains. Salesforce is backing a $25 billion（約4兆円） buyback program and was upgraded to Buy the previous week on valuation grounds, but the market is pricing in cannibalization as if it already happened.
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