Nasdaq drops $1 trillion as AI hits subscription model
The Nasdaq took a big hit on Tuesday, dropping 422 points and losing about $1.1 trillion in value as investors pulled back from AI stocks.
Companies are moving toward more tailored AI tools like Anthropic's Claude, which is shaking up the usual software subscription models.
Investors are pulling back from AI stocks
If you're into tech or investing, this means quick gains from AI aren't guaranteed right now—many portfolios felt the sting.
With all this market drama, people are playing it safer: Walmart just hit a $1 trillion valuation and gold prices jumped 5%, showing where money is flowing when things get rocky.
SaaS companies take a hit
Worries about SaaS companies led to sharp falls for PayPal (down over 17%), Salesforce, and ServiceNow. The rise of smarter AI agents is making traditional subscriptions less appealing.
Even big names like NVIDIA and Microsoft slipped by around 2%, echoing trends we saw late last year as heavy spending on AI hasn't paid off yet.