So much for Anthropic (ANTH.PVT) and OpenAI (OPAI.PVT) killing all software companies before 2028.
AlphaSpace intel: According to Yahoo Finance AlphaSpace, the iShares North American Tech-Software ETF closed above its 200-day moving average on Friday for the first time since Jan. 7. The ETF has rallied about 35% from the April 10 lows.
Traders widely consider the 200-day moving average to be the “ultimate trendsetter” in financial markets. It represents the average closing price of a stock or index over the past 200 trading days, effectively smoothing out daily “noise” to reveal the long-term trajectory.
Software stock vibe check: Software stocks just got a much-needed boost from Snowflake (SNOW) within the past week. The company hammered Wall Street profit estimates and materially hiked guidance owing to strong demand for AI-related offerings.
Cybersecurity stocks like CrowdStrike (CRWD) and Palo Alto Networks (PANW) have also been back in rally mode amid the view that more powerful AI models are increasing the security risks for large enterprises.
Nevertheless, Wall Street is still terrified that artificial intelligence is on the verge of making traditional enterprise software obsolete.
Making matters worse, revenue growth for software firms genuinely slowed through 2025. Enterprise clients began delaying purchases, taking a wait-and-see approach to figure out whether AI tools could do the jobs their expensive SaaS subscriptions once handled.
Salesforce (CRM) repurchased $27 billion in stock in its most recent quarter, but the stock was met with a sell-off on earnings day last week. That underscores the lingering growth concerns on the sector.
Bottom line: Let’s see how the software stock recovery handles news of new model updates out of Anthropic and OpenAI.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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