tech
February 24, 2026
The violent software sell-off pauses. Wall Street says bet on these stocks to bounce
Some analysts believe the sell-off is overdone in companies across cybersecurity and traditional software, opening up buying opportunities.
TL;DR
- Software stocks experienced a historic sell-off in early 2026 due to concerns that AI could disrupt the SaaS business model and diminish pricing power.
- Despite remaining down year-to-date, the sector saw a pause in the sell-off with some stocks bouncing back.
- Analysts believe the sell-off is overdone, creating attractive entry points for investors in cybersecurity and traditional software companies.
- Companies like Intuit, CrowdStrike, Salesforce, and others are considered more AI-resilient due to their durable models and AI adoption.
- Demand for cybersecurity solutions is increasing as security is viewed as a key enabler for enterprise AI adoption.
- Some investors are sticking with software names like Oracle and Microsoft, seeing the current sell-off as a long-term buying opportunity.
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