Is Software the New Newspaper? Goldman Sachs Warns of Long-Term Disruption

NEW YORK – Goldman Sachs has issued a striking comparison that is sending ripples through the tech sector. Strategist Ben Snider suggests that the current "Software Rout of 2026" might not just be a temporary market correction, but the beginning of a structural decline similar to what the newspaper industry faced two decades ago.

The "Newspaper Moment" for Tech

In the early 2000s, the rise of the internet fundamentally disrupted traditional print media. Between 2002 and 2009, newspaper stock prices plummeted by an average of 95%. Goldman Sachs warns that artificial intelligence (AI) could pose a similar "existential threat" to traditional software-as-a-service (SaaS) companies.

Key Takeaways from the Goldman Note:

• Earnings Stability is Key: Historically, stock prices only stabilize when the long-term earnings outlook becomes predictable. Currently, AI is creating massive uncertainty around future profit margins for software firms.

• Disruption Risk: Just as the internet made physical news distribution obsolete, AI agents and automated coding tools may reduce the need for expensive, seat-based software subscriptions.

• Valuation vs. Growth: While software valuations have dropped significantly since late 2025, the firm suggests that "cheap" prices aren't enough to trigger a bottom if revenue growth expectations continue to fall.