If you are worried about your SaaS company stock options or ESPP right now, you aren’t the only one. Many tech employees and investors are looking at their portfolios and wondering what comes next.

As a market practitioner, I’ve been tracking the severe hit SaaS companies are taking, and unfortunately, it doesn’t look like a temporary dip. In my latest video, I break down the macroeconomic conditions driving this correction and why the fundamental nature of software is changing.

The Macro Wave Behind 2026’s Selective Tech Correction: AI Deflation Hits Software Pricing Power

Introduction

The market is not experiencing a uniform tech correction. While some names hold steady or rebound, others—particularly those tied to OpenAI’s ecosystem or reliant on legacy pricing models—are facing sharp, persistent declines.

Most commentary treats these as isolated events: hype fade, earnings misses, or macro caution. But a deeper macro regime shift is at work: generative AI is proving deflationary for software pricing power, commoditizing what was once proprietary and high-margin, forcing a permanent repricing of certain tech businesses.