Morgan Stanley: European software stocks face dual threat of competition from internal development and startups.

Morgan Stanley analyst pointed out that European software stocks are facing a dual threat of internal corporate development and competition from startups. Analysts say that artificial intelligence tools enable companies to more easily develop applications on their own. In addition, startups focusing on specific areas of artificial intelligence applications innovate at a faster pace than large software companies. The analyst also mentioned that, given that some software companies use a user-based sales model, a reduction in the number of employees at client companies also poses a threat to software stocks. Although European software stocks rose slightly by 0.7% on Monday, partially recovering lost ground, they have still fallen by about 16% so far this year.