Software stocks fell across the globe after Facebook owner Meta said it will launch a new artificial intelligence-powered Enterprise Platform, prompting renewed investor fears that industry mainstays are vulnerable to competition from AI.

Meta's new business-support offering will "help businesses use AI to grow and transform in new ways," Chief Executive Mark Zuckerberg said in an X post before the opening bell Monday.

New York-listed stocks reacted sharply to the announcement. Salesforce shares tumbled 4.7% at market open, while Microsoft dropped 2.3%. Workday and Snowflake fell 2.7% and 4.2%, respectively.

Losses were also acute in Europe, where a basket of software stocks fell 2.3%. SAP, the most valuable company in Germany, dropped 3.4%, while London-listed RELX fell by 2.5%. In Paris, Capgemini shares fell 2.9%.

Meta's announcement is the latest step in the company's shift away from its traditional focus on consumers, and toward enterprise customers. For software companies, the prospect of competition from Meta revives "SaaSpocalypse" concerns that saw global software stocks crater earlier this year over fears AI agents would eat into incumbents' business.

Chirantan Desai, chief executive of New York-listed MongoDB, will lead Meta's new product as Chief Enterprise Platform Officer, Zuckerberg said. MongoDB confirmed the announcement, and said Desai will leave the company immediately. Shares in MongoDB tumbled 23%.

The new platform will combine several of Meta's existing AI tools, including its recently launched Muse personal assistant, Zuckerberg said.