Concerns are growing that artificial intelligence (AI) tools will disrupt the world's largest software business, triggering a widespread sell-off.
A 30% drop in Monday.com Ltd shares has caught investors off guard in Europe.
Analysts said the decline reflected concerns about the long-term competitive threat from AI and financial performance that failed to meet investor expectations.
The concerns led to heavy losses across sectors, including SAP SE - Europe's largest listed company - which fell 7.1% in Frankfurt, wiping out almost €200 billion (RM108.31 billion) in market value.
Shares in Sage Group Plc and Dassault Systemes SE also fell in trading yesterday.
Concerns are also growing that existing software makers are at risk of fiercer competition as AI tools enable applications to be built faster and cheaper.
OpenAI CEO Sam Altman also warned that the sector could enter a "fashionable era" of cheaper and faster production.
Concerns have also gripped IT research and consulting companies such as Gartner Inc, which lowered its annual forecast last week.
