Beaten-down software stocks RingCentral and Five9 rally as earnings quell AI fears

Software stocks RingCentral and Five9 rallied after reporting earnings that beat expectations, providing a counterpoint to the AI-driven selloff that hammered the sector. The results suggest some software companies can coexist with AI rather than being disrupted by it. The recovery follows weeks of indiscriminate selling across SaaS stocks triggered by Anthropic's Claude Cowork plugins. Investors are beginning to differentiate between companies genuinely at risk of AI disruption and those caught in the crossfire.

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