AI concerns pummel European software stocks

• RELX and Wolters Kluwer, both serving the legal analytics industry, dropped over 10% following Anthropic's Claude chatbot updates
• SAP plunged over 16% last week after missing cloud revenue forecasts, wiping out $40 billion in market value in one day
• Advertising firms face particular pressure, with a Barclays survey identifying them as the most exposed European media sector to AI disruption, ranking WPP, Omnicom, and Publicis as top 'AI losers'

European Software and Advertising Stocks Plunge on AI Disruption Fears

European software, data analytics, and advertising companies experienced sharp sell-offs on Tuesday, February 3, 2026, as advanced AI models triggered concerns about incumbent firms' ability to defend their business models against disruptive technology.

Key Catalysts and Market Movements:

The selloff was primarily sparked by Anthropic's introduction of updated capabilities for its Claude generative AI chatbot. Legal analytics providers RELX and Wolters Kluwer plummeted over 10% each. Germany's SAP, once Europe's most valuable company, had already slumped 16% the previous week after disappointing cloud revenue forecasts wiped $40 billion off its market value in a single day.

Other professional services firms also suffered: Experian, Sage Group, London Stock Exchange Group, and Pearson declined between 4.2% and 8%.

Advertising Sector Under Pressure:

French advertising giant Publicis dropped 6.3%, despite announcing approximately €900 million ($1.06 billion) earmarked for AI-focused acquisitions in 2026. A Barclays survey identified advertising agencies as the most AI-exposed segment of European media, with WPP, Omnicom, and Publicis ranked as top "AI losers."

Market Implications:

Lars Skovgaard of Danske Bank noted that software companies were previously "assumed to be winners from AI," but investors now question whether firms can monetize AI investments before being disrupted by competitors. Baader Bank analyst Maximilien Pascaud warned that "deflationary pressure on software-sector multiples could persist" until companies clearly demonstrate organic AI monetization.

Barclays analysts suggest companies can shed the "AI loser" label by launching and promoting revenue-generating AI products, highlighting the urgent need for incumbent firms to prove their AI strategies deliver tangible returns.