CrowdStrike Holdings Inc. (CRWD) shares plummeted 5.03% during intraday trading on Tuesday, as the stock experienced significant downward pressure alongside other software and cloud companies.
The decline was part of a broad selloff across the software and cloud sector, driven by renewed investor unease about how quickly newer, more capable artificial intelligence models could disrupt established business models. This has revived questions over whether today's perceived leaders in the AI space can protect their pricing power and sustain long-term growth in the face of potential technological disruption.
The S&P 500 software and services index dropped 3.3% on the day, marking its fifth consecutive session of losses. Other major software and cloud firms, including Microsoft, Adobe, Datadog, Salesforce, and Snowflake, also saw significant declines during the session, indicating a sector-wide retreat rather than company-specific issues.
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