Why Are Software Stocks Down?
Software stocks have gotten off to a rocky start to begin 2026. As of this writing, both the S 500 and Nasdaq Composite are essentially breakeven on the year. While that performance may seem mundane, it's held up far better than the software industry. The iShares Expanded Tech-Software ETF has plummeted by 20% so far this year.
I'll dig into some of the key factors plaguing software stocks right now. Is this an opportunity to buy the dip, or is the artificial intelligence (AI) software trade a falling knife in the making? Read on to find out.
Over the last three years, cloud hyperscalers such as Microsoft (NASDAQ: MSFT), , and Amazon have collectively poured hundreds of billions of dollars into capital expenditures (capex). These funds have been used to procure GPUs and networking equipment to construct AI data centers.
Source Fool.com
Alphabet Inc. A Stock
The stock is one of the favorites of our community with 166 Buy predictions and 2 Sell predictions.
As a result the target price of 334 € shows a slightly positive potential of 13.11% compared to the current price of 295.3 € for Alphabet Inc. A.
