U.S. Software Company Stocks Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Source: moomoo
Overview of U.S. Software Companies: The article discusses the current landscape and performance of software companies in the United States, highlighting key trends and challenges they face.
Market Dynamics: It examines the competitive environment within the software industry, including the impact of emerging technologies and changing consumer demands.
Financial Performance: The piece provides insights into the financial health of major U.S. software firms, including revenue growth and profitability metrics.
Future Outlook: The article concludes with predictions about the future of the software industry, considering factors such as innovation, regulation, and market expansion opportunities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CRM?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
42 Analyst Rating
31 Buy
10 Hold
1 Sell
Moderate Buy
Current: 185.000
Low
223.00
Averages
326.95
High
405.00
Current: 185.000
Low
223.00
Averages
326.95
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
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.
AI Investment Sparks Market Turbulence
- Market Concerns Intensify: Amazon's announcement of a $200 billion investment in AI-related capital expenditures by 2026 has led to a 9% decline in its stock year-to-date, reflecting investor worries about excessive AI spending potentially impacting future profitability.
- Microsoft's Earnings Reaction: Despite reporting a 17% year-over-year revenue increase and a 21% rise in operating income, Microsoft's stock fell 17% due to concerns over its plan to spend over $100 billion on capex this year, indicating market skepticism about its AI investments.
- SaaS Sector Struggles: Software companies like Salesforce and Adobe have seen significant stock price declines as investors fear that advancements in AI will severely disrupt the enterprise software industry, leading to a phenomenon dubbed the
See More
AI Stocks Decline Amid Spending Concerns
- Investor Concerns: Major AI and software stocks have declined year-to-date due to worries about AI spending and industry disruption, with Amazon and Microsoft seeing stock drops of approximately 9% and 17%, respectively, reflecting market skepticism about their planned capital expenditures of $200 billion and $100 billion.
- SaaS Industry Crisis: As AI technology advances, investors are increasingly anxious about the future of software-as-a-service (SaaS) companies, with some labeling the situation as the 'SaaSpocalypse,' leading to significant declines in stocks like Salesforce and Adobe, indicating concerns over traditional software profitability.
- ETF Investment Opportunity: Investors can consider buying the iShares Expanded Tech-Software ETF to capitalize on a potential rebound in software company share prices, which includes 114 North American software firms and has delivered an average annual return of 10.4%, despite a P/E ratio of 35.2, slightly above the Nasdaq-100's 32.4.
- Uncertain Industry Outlook: Despite industry insiders like Nvidia CEO Jensen Huang opposing the 'SaaSpocalypse' narrative, asserting that AI will not fully replace software, the ongoing sell-off in software stocks continues, prompting investors to carefully evaluate future investment opportunities.
See More
Eric Schmidt's Family Office Tops Deal-Making Rankings
- Leading Investment Activity: Eric Schmidt's family office, Hillspire, made 15 investments in 2025, primarily in artificial intelligence, showcasing its influence among high-net-worth investors and reflecting a keen insight into future tech trends.
- Diverse Industry Engagement: In 2025, the 15 family offices collectively made over 120 investments across various sectors including robotics, software, and biotech, highlighting their significant role in driving innovation and economic growth.
- AI Investment Priority: A recent survey revealed that 65% of family offices identified artificial intelligence as their top investment priority, indicating the technology's central role in future portfolios and its potential to lead industry transformation.
- Growth of Family Offices: The number of family offices in the U.S. is expected to rise from 8,000 last year to over 10,700 by 2030, managing over $3 trillion in assets, thus becoming a powerful force in mergers and acquisitions and startup funding, further intensifying market competition.
See More
Salesforce Shares Hit 52-Week Low Amid Software Selloff
- Stock Decline: Salesforce shares fell 4.4% to $185 on Wednesday, marking the lowest close since March 2023, reflecting a broader selloff in software stocks, although analysts remain optimistic about the company's long-term fundamentals.
- Market Potential Assessment: Morgan Stanley highlighted that Salesforce still possesses ‘triple-digit potential,’ with a price target of $327.49 suggesting a 77% upside despite a 30% year-to-date decline, indicating strong market confidence in its future growth.
- AI Impact Analysis: Investor concerns about traditional subscription software models have intensified due to rapid advancements in AI, with Salesforce's potential in AI integration seen as a key driver for future enterprise software spending, leading to bullish sentiments from Wedbush Securities analysts.
- Analyst Rating Distribution: According to Koyfin data, Salesforce is covered by 58 analysts, with 8 rating it as ‘Strong Buy’ and 37 as ‘Buy,’ reflecting widespread confidence in its future performance amidst current market volatility.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
Software Selloff Resumes Amid Mixed Labor Market Signals
- Software Selloff: After three consecutive days of gains, the iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell over 3% on Wednesday, indicating a decline in market confidence towards the software sector, which could impact investor sentiment towards tech stocks overall.
- Strong Jobs Data but Severe Revisions: Although January's nonfarm payrolls rose by 130,000, significantly exceeding economists' expectations of 70,000, the total U.S. job growth for 2025 was drastically revised down to just 181,000, highlighting the fragility of economic recovery and potentially raising concerns about future growth.
- Unexpected Drop in Unemployment Rate: The unemployment rate fell from 4.4% to 4.3%, which appears positive on the surface; however, this contrasts sharply with the downward revisions in job growth, possibly leading investors to question the economic outlook.
- Robinhood's Poor Market Performance: Robinhood Markets Inc. (NASDAQ:HOOD) saw its stock tumble 12% following a revenue miss and disappointing cryptocurrency trading results, reflecting market concerns about its future profitability and potentially undermining investor confidence.
See More
AI Investment Sparks Market Turbulence
- Market Concerns Intensify: Amazon's announcement of a $200 billion investment in AI-related capital expenditures by 2026 has led to a 9% decline in its stock year-to-date, reflecting investor worries about excessive AI spending potentially impacting future profitability.
- Microsoft's Earnings Reaction: Despite reporting a 17% year-over-year revenue increase and a 21% rise in operating income, Microsoft's stock fell 17% due to concerns over its plan to spend over $100 billion on capex this year, indicating market skepticism about its AI investments.
- SaaS Sector Struggles: Software companies like Salesforce and Adobe have seen significant stock price declines as investors fear that advancements in AI will severely disrupt the enterprise software industry, leading to a phenomenon dubbed the
See More
AI Stocks Decline Amid Spending Concerns
- Investor Concerns: Major AI and software stocks have declined year-to-date due to worries about AI spending and industry disruption, with Amazon and Microsoft seeing stock drops of approximately 9% and 17%, respectively, reflecting market skepticism about their planned capital expenditures of $200 billion and $100 billion.
- SaaS Industry Crisis: As AI technology advances, investors are increasingly anxious about the future of software-as-a-service (SaaS) companies, with some labeling the situation as the 'SaaSpocalypse,' leading to significant declines in stocks like Salesforce and Adobe, indicating concerns over traditional software profitability.
- ETF Investment Opportunity: Investors can consider buying the iShares Expanded Tech-Software ETF to capitalize on a potential rebound in software company share prices, which includes 114 North American software firms and has delivered an average annual return of 10.4%, despite a P/E ratio of 35.2, slightly above the Nasdaq-100's 32.4.
- Uncertain Industry Outlook: Despite industry insiders like Nvidia CEO Jensen Huang opposing the 'SaaSpocalypse' narrative, asserting that AI will not fully replace software, the ongoing sell-off in software stocks continues, prompting investors to carefully evaluate future investment opportunities.
See More
Eric Schmidt's Family Office Tops Deal-Making Rankings
- Leading Investment Activity: Eric Schmidt's family office, Hillspire, made 15 investments in 2025, primarily in artificial intelligence, showcasing its influence among high-net-worth investors and reflecting a keen insight into future tech trends.
- Diverse Industry Engagement: In 2025, the 15 family offices collectively made over 120 investments across various sectors including robotics, software, and biotech, highlighting their significant role in driving innovation and economic growth.
- AI Investment Priority: A recent survey revealed that 65% of family offices identified artificial intelligence as their top investment priority, indicating the technology's central role in future portfolios and its potential to lead industry transformation.
- Growth of Family Offices: The number of family offices in the U.S. is expected to rise from 8,000 last year to over 10,700 by 2030, managing over $3 trillion in assets, thus becoming a powerful force in mergers and acquisitions and startup funding, further intensifying market competition.
See More
Salesforce Shares Hit 52-Week Low Amid Software Selloff
- Stock Decline: Salesforce shares fell 4.4% to $185 on Wednesday, marking the lowest close since March 2023, reflecting a broader selloff in software stocks, although analysts remain optimistic about the company's long-term fundamentals.
- Market Potential Assessment: Morgan Stanley highlighted that Salesforce still possesses ‘triple-digit potential,’ with a price target of $327.49 suggesting a 77% upside despite a 30% year-to-date decline, indicating strong market confidence in its future growth.
- AI Impact Analysis: Investor concerns about traditional subscription software models have intensified due to rapid advancements in AI, with Salesforce's potential in AI integration seen as a key driver for future enterprise software spending, leading to bullish sentiments from Wedbush Securities analysts.
- Analyst Rating Distribution: According to Koyfin data, Salesforce is covered by 58 analysts, with 8 rating it as ‘Strong Buy’ and 37 as ‘Buy,’ reflecting widespread confidence in its future performance amidst current market volatility.
See More
US Stock Market Close and Employment Data Analysis
- Strong Employment Data: US nonfarm payrolls for January increased by 130,000, surpassing expectations of 65,000, indicating labor market stability, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, which is likely to have a positive impact on economic recovery.
- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
- Mixed Market Performance: The S&P 500 closed unchanged, the Nasdaq 100 rose by 0.29%, while the Dow Jones Industrial Average fell by 0.13%, highlighting a contrast between strong tech stock performance and weakness in software stocks.
- Optimistic Earnings Outlook: Over 78% of the 335 S&P 500 companies that reported earnings exceeded expectations, with Q4 earnings growth projected at 8.4%, indicating that sustained corporate profitability will support long-term stock market gains.
See More
Software Selloff Resumes Amid Mixed Labor Market Signals
- Software Selloff: After three consecutive days of gains, the iShares Tech-Expanded Software Sector ETF (NYSE:IGV) fell over 3% on Wednesday, indicating a decline in market confidence towards the software sector, which could impact investor sentiment towards tech stocks overall.
- Strong Jobs Data but Severe Revisions: Although January's nonfarm payrolls rose by 130,000, significantly exceeding economists' expectations of 70,000, the total U.S. job growth for 2025 was drastically revised down to just 181,000, highlighting the fragility of economic recovery and potentially raising concerns about future growth.
- Unexpected Drop in Unemployment Rate: The unemployment rate fell from 4.4% to 4.3%, which appears positive on the surface; however, this contrasts sharply with the downward revisions in job growth, possibly leading investors to question the economic outlook.
- Robinhood's Poor Market Performance: Robinhood Markets Inc. (NASDAQ:HOOD) saw its stock tumble 12% following a revenue miss and disappointing cryptocurrency trading results, reflecting market concerns about its future profitability and potentially undermining investor confidence.
See More
