The Software Stock Selloff

Key Takeaways

software has been this steady earning, you know, sector. You have long-term contracts like you said, tens of thousands of people and uh hard to remove, right? And um you know, the the uh the market was valuing these companies for that and now the questions are is that real and is that going to be sustainable? Um and obviously it's going to be sustainable for the next couple years because AI is nowhere near doing what what it's what what what these companies do. But, you know, over the long term, which is what some of the value of these companies is, over the long term, yeah, it's a threat. And so, people are just knocking down the valuations. These companies will be worth less in the market because there's a threat in the future. And so, companies are worth more when people are confident in their future and they're worth less when they're not. And then once these sell-offs happen, you don't want to sit around and watch it go down. You want to get out. And so everyone rushes to get