AI concerns pummel European software stocks

By Samuel Indyk and Danilo Masoni

LONDON, Feb 3 (Reuters) - A sell-off successful European software, information analytics and advertizing companies accelerated connected Tuesday, arsenic updated artificial quality models raised caller doubts ​about whether incumbent firms tin support their concern models, underscoring the technology's disruptive menace to ‌sectors erstwhile viewed arsenic AI winners.

One of the catalysts for Tuesday's selloff was the instauration of Anthropic's ineligible plug-in for its Claude ‌generative AI chatbot, according to traders and analysts.

The determination sent shares successful some Britain's RELX and the Netherlands' Wolters Kluwer, which some supply analytics services to the ineligible industry, down implicit 10%.

"The bundle companies were assumed to beryllium winners from AI," said Lars Skovgaard, elder concern strategist astatine Danske Bank.

"But each of a sudden, you ⁠start to interest astir whether you ‌can gain the wealth backmost (from your AI investments), and/or volition you beryllium outsmarted by updates coming in."

Shares successful RELX person present slumped implicit 45% from their highest past ‍February.

The melodramatic reversal successful RELX's stock price, which had go 1 of the 10 largest listed companies successful Britain past year, is an illustration of the interaction AI is having connected Europe's bundle sector.

Germany's SAP, which little than a twelvemonth ​ago was Europe's astir invaluable company, slumped implicit 16% past week, aft its unreality gross forecast ‌failed to conscionable expectations, which wiped disconnected $40 cardinal successful 1 day. Its shares were down 1.9% connected Tuesday and down 40% from past year's high.

"We support the presumption that deflationary unit connected software-sector multiples could persist arsenic agelong arsenic the integrated monetisation of AI is not intelligibly demonstrated," said Maximilien Pascaud, expert astatine Baader Bank successful a enactment wherever helium chopped his people connected SAP, portion keeping an adhd rating.

Other companies ⁠that specialise successful nonrecreational services were besides down.

Experian, Sage Group, ​London Stock Exchange Group and Pearson were down betwixt 4.2% and 8%.

ADVERTISING COMPANIES ​HIT

Advertising companies were besides nether pressure. France's Publicis shares dived implicit 8.5% aft the company's results.

Publicis, the world's largest advertizing radical by marketplace capitalisation, said it had earmarked ‍approximately 900 cardinal euros ($1.06 billion) ⁠for acquisitions successful 2026, focusing connected AI-powered technologies and information assets.

According to a Barclays survey of buy-side investors published connected Monday, advertizing agencies are seen arsenic the astir exposed portion of European ⁠media to artificial intelligence, with WPP, Omnicom and Publicis ranked the apical "AI losers".