This week, software stocks saw significant volatility as investors weighed the impact of artificial intelligence. HubSpot and Datadog each plunged 19% after their earnings reports, with Datadog noting its largest AI client reduced usage. Conversely, Twilio and Atlassian surged over 20% on Friday following strong quarterly results, with Atlassian's 35% jump marking its best day since 2015. Earlier in the week, workflow management startup Airtable was acquired for less than $1.3 billion, a sharp decline from its peak $12 billion valuation in 2021. The iShares Expanded Tech-Software Sector ETF, which plummeted 24% in Q1, is now down only 3% for the year, reflecting the sector's mixed performance.