Software stocks fall as yields rise, Iran tensions pressure ZETA, AI, RAMP and VRNS

Software stocks fell in afternoon trading on May 14, 2026, as the 10-year Treasury yield rose to 4.4% and renewed U.S.-Iran tensions weighed on high-multiple SaaS valuations. Zeta Global (ZETA), C3.ai (AI), LiveRamp (RAMP) and Varonis Systems (VRNS) were among the names under pressure. Investors shifted capital toward AI infrastructure companies such as Nvidia and Micron, where spending trends and earnings visibility are viewed as stronger. Concerns also persisted that agentic AI could weaken the subscription-based software model, pressuring revenue expectations for some enterprise software vendors. C3.ai remained a notable laggard. Shares were down 31.1% year to date at $9.47, 67.5% below their 52-week high of $29.16 in July 2025. The stock previously fell after Executive Chairman Thomas M. Siebel sold more than $4.1 million in shares on April 13 and April 14. The company reported fiscal third-quarter revenue of $53.3 million, down 46%, cut fiscal 2026 revenue guidance by about $51 million and posted negative free cash flow of $56.2 million.