Citi downgraded DocuSign, Autodesk, Veeva, SimilarWeb and NICE, cutting price targets and shifting ratings to Neutral/High Risk.
AI-native firms are projected to add over $100 billion in revenue, outpacing traditional software’s $50‑60 billion annual net new ACV.
Software stocks have fallen about 27% YTD despite strong late‑2025 performance, as IT budgets tighten and AI competition rises.
AI spending is beginning to divert corporate budgets from traditional IT and software, adding pressure on legacy vendors.