Software Stock Selloff Impacts IPOs and M&A Activity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Source: Newsfilter
- Market Volatility Intensifies: Software stocks have dropped approximately 25% over the past three months, leading to a slowdown in M&A and IPO activities as investor confidence in valuations wanes, making negotiations more cautious on both sides.
- Increased Deal Difficulty: Financial advisors report that the instability in the market complicates deal-making, with many companies opting not to sell at depressed prices, predicting that numerous transactions may break apart or be delayed in the coming weeks.
- IPO Postponements: Under current market conditions, Blackstone-backed Liftoff Mobile has decided to postpone its planned IPO, while Norwegian software firm Visma may also delay its potential $20 billion listing in London due to the ongoing selloff.
- Investor Sentiment Fluctuates: While some investors view the current situation as a buying opportunity for software companies, overall market sentiment remains driven by uncertainty, leading to valuation pressures for many firms and the potential for more take-private transactions in the future.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
