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The negative sentiment around software stocks does not seem to be going anywhere. As the likes of Anthropic's Claude come up with new capabilities frequently, software skeptics' obituaries keep increasing in number. Predicting the irrelevance of their services or offerings as tools like OpenClaw and Codex see increasing adoption by the day, software companies are expected to find it tough going for them.
Adding to the clamor recently has been major brokerage Piper Sandler, which lowered its price target on Microsoft (MSFT) to $500 from $600, still implying an upside potential of roughly 22% from current levels.