The AI-will-eat-everything story hit software stocks hard. Late last year and into early this year, investors grew convinced that large language models would let companies rip out expensive enterprise software and rebuild it cheaply overnight. Some software names fell 50% to 80% on that fear alone.
The earnings haven't backed it up. Margins have held. Growth rates haven't cracked. Free cash flow keeps coming. That gap between the panic and the actual numbers is usually where the opportunity sits.
