AI Can Do the Work But Can’t Take the Blame: 7 Software Stocks the Selloff Is Misunderstanding

Wall Street is in the grips of what Jefferies equity traders have dubbed the “SaaSpocalypse,” a historic, indiscriminate selloff of software stocks that has erased nearly $1 TRILLION in market value in a matter of weeks.

The iShares Expanded Tech-Software ETF (IGV), which provides concentrated exposure to the Software-as-a-Service (SaaS) industry, has plunged 28% from its September 2025 peak and roughly 21% year-to-date in 2026 alone. January was the ETF’s worst month since 2008.