Upland Software Inc

Shares of Sprout Social, ZoomInfo, and Upland Software fell sharply in afternoon trading as a broader selloff hit the communication-services and software complex, driven by high-profile AI talent departures from Alphabet and regulatory concerns. Sprout Social dropped 3.4%, ZoomInfo fell 7.3%, and Upland Software declined 8.4%. The declines came as Alphabet fell roughly 6% and Microsoft also slipped, dragging sector indices lower amid persistent market fears that AI agents will erode the subscription model underpinning traditional enterprise software economics. The previous week's near-20% single-day drop in Accenture, after the consulting giant cut its growth outlook citing AI compressing demand for traditional IT services, reinforced the thesis that AI is disrupting software vendors. Upland Software's move follows a volatile period, with the stock having had 68 moves greater than 5% over the past year, and it is up 219% year-to-date at $4.79 per share, a new 52-week high.

Upland Software, Fastly, and Strategy shares declined in afternoon trading as investors rotated out of high-multiple growth stocks. Upland Software fell 8%, Fastly dropped 6.1%, and Strategy lost 5%. The sell-off was driven by May import price data showing a 1.9% monthly rise versus a 1.1% forecast and an annual gain of 6.7%, the largest since August 2022, which complicated inflation expectations ahead of new Federal Reserve Chairman Kevin Warsh's first meeting. Additional pressure came from a Bank of America fund manager survey that showed portfolio managers cutting tech allocations and naming an AI bubble as the second-largest tail risk, cited by 28% of respondents, while SpaceX's $60 billion acquisition of AI coding platform Cursor signaled consolidation of valuable AI software assets.