The software sector has already seen more carnage this month than the finale of Game of Thrones, and we’re still only halfway through January. While many stocks in this industry have been suffering extended drawdowns since early 2025, big software companies received even more bad news this week from ‘Claude Code’, the new agentic coding tool for Anthropic’s Claude Sonnet AI bot. Claude Code was actually launched last year, but a new update this month sent another round of pain at some legacy software stocks. Is this selloff overdone, or are software stocks staring down a prolonged bear market?
