Shares of Figma (FIG 9.95%) were having another awful day as the design-focused cloud software stock tumbled as part of a broad-based sell-off in the software sector that seemed driven by declines in sector leaders like ServiceNow (NOW 9.94%) and Microsoft (MSFT 10.23%) today. Figma stock, which has plunged in recent months following a post-IPO pop last August, was approaching all-time lows, down 9.4% as of 1:59 p.m. Why software stocks were getting crushed todaySoftware stocks like Figma have been pulling back in recent months on fears that AI would cannibalize some software revenue streams, especially in areas like design, where AI tools have made website design much easier. There was nothing alarming in ServiceNow's earnings report as it reported 21% subscription revenue growth in the fourth quarter and called for around 21% subscription revenue growth in 2026, while profits continued to increase. Still, the biggest test for the company may be whether it can successfully push back on the AI disruption narrative that has crushed the stock.