- Macro woes hit US IT investment
- AI applications a way off
It has been a tough couple of weeks for some of the biggest names in enterprise software. Sector darling Salesforce's (US:CRM) shares nosedive by as much as 20 per cent after it released a weaker-than-expected trading update last week. This negative feeling was then projected onto European peers SAP (DE:SAP) and Capgemini (FR:CAP) – which each fell around 5 per cent in the week to 5 June.
The UK’s SME-focused Sage Group (SGE) has also struggled, although the company’s share price woes have been driven by its perceived struggles. Investors turned bearish when they saw that guidance in Sage’s interim results last month implied full-year sales growth may come in slightly below the market’s prior expectations. The question now is whether this is an inevitable correction following a period of excitement, or whether the shine is coming off software-as-a-service (SaaS) stocks more permanently.