Software stocks are taking the pipe. IBM stuck its head in the oven yesterday. The IGV ETF represents the software sector and it crashes -35% in the last 17 weeks (4 months). Software is taken to the shed out back behind the garage and beaten to a pulp. Why? IGV was the nice old man handing out candy to everyone over the last few years and now he is beaten and rolled in the back alley. Why?
AI (artificial intelligence) will do the work of software. It is that simple. Software engineers and programmers yell, "Blasphemy!" Sure they do because they are the ones that will lose their jobs. The private equity arena is betting slapped silly along with the software sector due to AI drama. Do you want to provide loans to companies that are starting to look like dinosaurs and may be out of business in a few years?
The big software behemoths such as MSFT Microsoft, GOOGL Google, and ORCL Oracle may weather the storm but others such as CRWD CrowdStrike, CRM Salesforce, SNOW Snowflake, ADBE Adobe, DOCU DocuSign and IBM may have a tougher row to hoe.
CRWD crashes -39% in the last 14 weeks. It looks like the crowd did strike CrowdStrike. They should call it CrowdStrife. All of you dumb little twits listening to talking heads on television lost your shirts.
CRM crashes -35% in only 7 weeks after a triple top. Note that triple tops do exist. Idiots donning fleece vests, that display their embroidered tech company logo, had puffed-out their chests at Christmastime bragging that they own Salesforce one of the best companies positioned to take advantage of the AI revolution. Seven weeks later they are crying in their beer regretting that they ever got involved in the stock market now hoping that no one asks about their CRM investment.
SNOW crashes -45% in 15 weeks taking a prize as one of the biggest pieces of software sh*t. The snowflakes piled up into a snowstorm and then a blizzard and now the SNOW stockholders are left out in the cold. Young folks get a bad rap about being snowflakes. There are always lazy ne'er-do-wells in all age groups but everyone always gets painted with the same brush. You will have to buck-up and prove everyone wrong, that's all. The snowflakes were snow-jobbed into buying SNOW and now they are snowed-in.
ADBE crashes -32% in only 41 days. The chimney is falling down and the roof is caving in, on that little adobe, er abode, close enough. Log Cabin in the Lane is a standard bluegrass song. Adobe was a darling of investment houses for a long time but the ADBE shareholders may start wearing barrels if the crash continues.
DOCU crashes -42% in only 30 days. Ouch. That is going to leave a mark. On the bright side, DocuSign will be able to sign its own death certificate. Mr Brightside by the Killers.
IBM crashes -31% in 17 days. The BM stands for bowel movement. That is appropriate since IBM's -13% crash yesterday is a bed-sh*tting of epic proportions the worst day in 25 years. Anthropic says its Claude Code agentic tool can modernize the COBOL systems stabbing straight at the heart of IBM. Claude is an interesting name selection that comes from Latin and is used in the French language. Pause for laughter. The literal meaning of claudus is "lame" and "limping." The idiots in charge did not think of checking the derivation of the name they pick for their fancy program. Anthropic may be lame and limping gong forward. It is a nation of morons, with chests puffed-out and chins held high, wearing fleece vests, everyone telling each other how smart they are.
There are many other software companies to watch including PLTR Palantir, NOW ServiceNow, INTU Intuit, FIG Figma and more. Everyone is excited about the AI revolution and what is coming. Be careful what you wish for. There is only one king in life. Rock 'n Roll is King. Come on ladies, get out on that dance floor and shake your money maker. YOLO. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
Note Added 5:18 PM EST: The software stocks recover today and Anthropic proclaims that it is not a disrupter, no sirree, it is a collaborator. Anthropic does not want to horn-in on IBM and mess with the COBOL platform but instead work as a partner; same with all other companies. Anthropic saw the light and got religion once they saw stocks crashing around them with their company targeted as a disrupter and one of the reasons for the crash. Praise the Lord, I Saw the Light.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.