What Happened?
A number of stocks fell in the afternoon session after investor fears over artificial intelligence disrupting the software industry sparked a broad sell-off. The anxiety stemmed from the rapid adoption of new 'agentic AI' tools, which some investors believed could dismantle traditional Software-as-a-Service (SaaS) business models. This 'AI Panic' led to indiscriminate selling across the sector. The market move reflected growing concerns about the downside of the AI boom for established software companies.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Video Conferencing company RingCentral (NYSE: RNG) fell 2.9%. Is now the time to buy RingCentral? Access our full analysis report here, it’s free.
- HR Software company Asure Software (NASDAQ: ASUR) fell 3.3%. Is now the time to buy Asure Software? Access our full analysis report here, it’s free.
- Vertical Software company Bentley Systems (NASDAQ: BSY) fell 2.5%. Is now the time to buy Bentley Systems? Access our full analysis report here, it’s free.
- Design Software company Dolby Laboratories (NYSE: DLB) fell 3.3%. Is now the time to buy Dolby Laboratories? Access our full analysis report here, it’s free.
Zooming In On Dolby Laboratories (DLB)
Dolby Laboratories’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Dolby Laboratories is flat since the beginning of the year, and at $63.70 per share, it is trading 24.6% below its 52-week high of $84.50 from February 2025. Investors who bought $1,000 worth of Dolby Laboratories’s shares 5 years ago would now be looking at an investment worth $674.02.
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