Software stocks wrap best month since 2001 as talk of ‘SaaSpocalypse’
Software stocks wrap best month since 2001 as talk of ‘SaaSpocalypse’
Publish Date: 2026-05-29 17:03:00
Source Domain: www.cnbc.com
- The iShares Expanded Tech-Software ETF had its best monthly performance since October 2001, seeing an 8% rise this week and a 21% increase in May.
- Snowflake and Okta drove the recent surge in software stocks, suggesting better-than-expected resilience to AI disruption.
- Snowflake had its best single-day performance ever on Thursday and logged a nearly 50% gain over four trading days, announcing a $6 billion partnership with Amazon to provide cloud and chip components.
- Analysts are particularly bullish on Snowflake’s potential benefits from generative AI, boosting the price target from $250 to $300.
- Okta also saw significant gains, rising 30%, attributing its success to the increased demand for identity security tools due to the shift towards agentic AI.
- Other software firms such as Atlassian, ServiceNow, and Oracle also experienced notable gains, though Microsoft’s stock lagged, declining nearly 7% for the year.
