Software Bear Market: 2 Stocks Down 74% and 40% To Buy Now
2026-02-25 22:50:00 ET
Investors came into 2026 worried about an AI bubble. Indeed, a bubble is bursting, but it's not in AI stocks.
Instead, software stocks have dived this year with the iShares Expanded Tech-Software Sector ETF (NYSEMKT: IGV) , which counts Microsoft , Palantir , and Salesforce among its biggest holdings, down 24% year-to-date through Feb. 25 as fears of AI disruption have sparked a wave of selling in high-priced software-as-a-service ( SaaS ) stocks.
While some of the selling seems justified given the lofty valuations in the sector and the rapid advancement of AI tools like Claude Cowork, some SaaS stocks seem oversold. Keep reading to see why Figma (NYSE: FIG) and Axon Enterprise (NASDAQ: AXON) look like buys, especially after their recent earnings reports.
NASDAQ: AXON
AXON Trading
-3.53% G/L:
$496.87 Last:
367,893 Volume:
$514.99 Open:
