Software stocks are selling off. Here's how to play them.
Yahoo Finance
|
February 05, 2026 at 11:30 PM UTC
Bullish
85% Confidence
Watch on YouTube
Key Points
- AI is seen as a 'death of software' by some, but Jaluria believes it's 'absolutely wrong' and an overreaction.
- AI will be 'TAM expansive,' increasing spending on software by enabling new functionalities and efficiencies.
- Jaluria identifies HubSpot (HUBS), MongoDB (MDB), and Intuit (INTU) as quality buying opportunities due to their innovation and strategic positioning for AI integration.
AI Summary
Rishi Jaluria of RBC Capital Markets argues that the recent software sell-off, driven by AI fears, is a significant overreaction. He believes AI will expand the total addressable market for software, not destroy it, and presents buying opportunities in innovative companies. The market is incorrectly pricing in terminal value risk for many software businesses.
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Gemini 2.5 Flash | Bullish | 85% |
| Consensus | Bullish | 85% |