Neal Freiman

One senior equity investment manager based in Paris told Bloomberg, there's clearly indiscriminate selling across the entire software cluster.

Toby Ogg, which is a great name, by the way, who is that analyst that you mentioned, he said that for software companies, better than expected results are no longer enough to convince the market.

basically saying that it's almost ready, aim, fire at this point when it comes to selling software stocks because you dive into some of the financials of these companies, some of the earnings of these companies, and they're doing all right.

ServiceNow last week said, "'It is accelerating net new ARR at a huge scale.'"

Seems pretty bullish.

How did the market react?

It lost $12 billion in market cap and is since down about 10%.

The SaaS index is down 32% over the past year, despite most companies meeting or beating earnings.

All the while, markets are up 15% over that same period.

So there really is a lot of fear in the space right now that is pretty divorced from the actual fundamental businesses themselves.

And I just, yeah, it's worth emphasizing that this software sell-off is not a this week news headline.

It's a full year headline where they've been kind of on a downward trajectory, but then the anthropic legal tool dropped this week.

And then essentially it was just sell first, ask questions later.

There are some who are pushing back on this software sell-off, saying it's way overdone.

Like, this is very indiscriminate at this point.

And one figure who thinks software stocks are getting unfairly pummeled is NVIDIA CEO Jensen Huang, who is essentially the king of AI right now.

He called it the most illogical thing in the world.

He said that AI is going to use existing tools to accomplish tasks rather than reinvent them.

He said, would you use a hammer or invent a new hammer?

So he's one of the bigger names saying,