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2026-05-21 / MARKETS
SaaSpocalypse by the Numbers: $285B Wiped from Software Valuations, Google Reports Human Code Down to 25%
The early 2026 'SaaSpocalypse' selloff wiped approximately $285 billion from software stock valuations as markets priced in AI disruption risk. A key catalyst: Google reported that human-generated code has dwindled to 25% of its total output, making the per-seat pricing model that underpinned SaaS economics for two decades structurally unstable when one AI-equipped user replaces five traditional seats. However, Betterment's May 2026 analysis notes AI is creating a clear divide — large-cap software with proprietary data assets is outperforming while thin-layer SaaS gets crushed.
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