Growing investor apprehension surrounds the disruptive potential of AI across various sectors, prompting a shift away from companies perceived as vulnerable. Strategists have pinpointed firms like Wix.com, Shutterstock, and Adobe as particularly susceptible to AI-driven upheaval. Since mid-May, these companies have collectively underperformed the S&P 500 Index by approximately 22 percentage points.
The defensive stance adopted by investors is evident in the share performance of companies such as Wix.com and Shutterstock, both experiencing declines of at least 33% in 2025. Adobe's shares have also suffered a 23% drop, fuelled by concerns that clients may transition to AI platforms capable of generating images and videos. Service-based businesses with substantial headcounts are considered especially at risk, even those previously successful in the tech sector.
Despite the increasing anxiety surrounding AI's impact, some companies initially projected to be negatively affected are thriving. The market's reaction underscores a broader re-evaluation of tech valuations amidst the rapid advancement and integration of AI technologies.
