By Xavier Martinez

Software stocks are skidding today. The rout underscores how fast Wall Street's enthusiasm for the sector has evaporated in the months since the emergence of "vibe coding"-the practice of using AI tools to quickly produce apps and websites.

-- ServiceNow, which reported earnings Wednesday afternoon, is down 11%. The drop comes amid ServiceNow's recent streak of acquisitions, which have caused some concerns over whether the company's organic growth is slowing.

-- Cloud-software provider Salesforce was recently down about 8%-on pace for the largest percent decrease in nearly two years, according to Dow Jones Market Data. It is on pace for its worst month since October 2008, during the 2008-09 financial crisis.

-- Intuit shares are also down, with the company recently on pace for its lowest close since November 2023.

-- Shares of software providers Atlassian and Datadog are also seeing sharp declines.

-- Software stocks are weighing on the Nasdaq composite, which is down about 2%.

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(END) Dow Jones Newswires

January 29, 2026 11:35 ET (16:35 GMT)

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