Key Takeaways
- After last week’s “broad and largely indiscriminate” software sell-off, some stocks within the industry are trading at a more than 50% discount to their fair value, Morgan Stanley analysts wrote in a note on Wednesday.
- Analyst say uncertainty about the future of the industry could continue to be a headwind for stocks without more evidence of AI-driven productivity gains or revenue growth.
Software stocks may be down, but they’re not out, according to analysts at Morgan Stanley.
Shares of software companies have been hammered this year by concerns that AI will upend the industry. The iShares Expanded Tech-software Sector ETF (IGV) has shed more than a fifth of its value since the start of the year, led lower by…
