Software ETFs Drop 19.3%, Cuban Predicts AI Customizers Using Google Veo
Mark Cuban said rigid SaaS is obsolete as AI-driven platforms will customize software in real time, noting software ETFs IGV and XSW have fallen 19.34% and 17.56% YTD. He predicts demand for “Technical Translators” to implement AI tools like Google Veo across 33 million U.S. SMBs lacking dedicated AI teams.
1. AI Customization Over Static SaaS
In his forecast that software is dead, Mark Cuban argued static SaaS platforms will be replaced by AI-driven solutions that adapt in real time to each company's processes, shifting value toward implementation over generic tools.
2. Software ETF Performance
Cuban highlighted that U.S.-focused software ETFs have struggled in 2026, with the iShares Expanded Tech-Software Sector ETF (IGV) down 19.34% and the SPDR S&P Software & Services ETF (XSW) down 17.56%, underscoring market skepticism around legacy software models.
3. SMB Market Implementation Opportunity
He sees a massive opportunity to help 33 million small-to-medium-sized U.S. businesses integrate AI without in-house teams, prioritizing bespoke deployments that align with unique operational needs.
4. Role of Technical Translators and Google Veo
As AI platforms like Alphabet’s Google Veo mature, Cuban predicts the Technical Translator will become essential, bridging complex AI models and real-world applications to modernize businesses.