Reviewed by Gotrade Internal Analyst
Gotrade News - Software stocks started clawing back gains on Monday (Feb 10) after taking a beating last week. The vibe shift comes as investors rethink the narrative that AI is about to wipe out the industry's business model.
Wall Street analysts are calling the "software doomsday" triggered by Anthropic’s Claude update totally overblown. The dip is looking less like a crisis and more like a buying opportunity for those watching the fundamentals.
Key Takeaways
Wall Street thinks the fear of AI replacing enterprise software is premature.
AI adoption is a slow burn due to complex data migration and security risks.
Current discounted valuations are seen as a prime entry point by analysts.
Oracle led the charge, jumping nearly 10% after scoring a rating upgrade. Gil Luria from DA Davidson clapped back at the skeptics in his note, stressing that legacy software isn't dead just because AI is here.
The massive sell-off kicked off when investors panicked over Anthropic’s new LLM capabilities. The fear was that Claude could handle long documents so well it would make specific legal and finance software obsolete overnight.
However, Dan Ives from Wedbush isn't buying the gloom and doom scenario. He remains bullish on heavyweights like Microsoft, arguing the market’s reaction is way over the top given their strong fundamentals.
Management at monday.com also weighed in, noting customers still prioritize their existing data context. The consensus is that AI will likely live inside the apps we already use, not replace them entirely.
Josh Sheluk from Veracan Capital dropped a solid reality check, comparing this to the arrival of spreadsheets in the 90s. Excel didn't kill accountants; it just handled the grunt work so they could be more efficient.
The volatility sparked by this AI debate is creating some wild price action in the market. You don't need to stress about guessing whether the market will rip higher on optimism or dip on panic.
With an Options strategy on the S&P 500 ETF (SPY), you can potentially profit from both sides of the move. You can ride the momentum when stocks bounce back or hedge your portfolio if things take a dive.
That’s the market update worth watching today. Follow Gotrade News for timely coverage on US stocks, ETFs, and macro moves that shape market direction. For a structured starter guide, visit the Gotrade Blog to learn the basics and build your plan.
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Reference:
Yahoo Finance, Software stocks jump as Wall Street pushes back on 'doomsday scenario' for industry. Accessed on February 10, 2026
Global News, Why software stocks are clawing back after a ‘severe’ hit over AI updates. Accessed on February 10, 2026
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