Story perspectives

Analysts See Opportunity in Software Stock Selloff

2/10/2026

Summary

Story summary

Morgan Stanley analysts say the recent selloff in enterprise software stocks, led by Microsoft and Salesforce, presents attractive entry points for investors.
They acknowledge concerns about artificial intelligence impacting software companies but say the fundamental tech outlook remains strong.
They note revenue growth expectations for major tech stocks are at multi-decade highs.
The stance is mixed, with some analysts advocating investment while others recommend a hold on certain stocks.

History

Historical Context

The dot-com bubble peaked on March 10, 2000, when the NASDAQ Composite index reached 5,048.62, driven by rampant speculation in Internet startups. However, by 2002, the index had plummeted nearly 78%, erasing $5 trillion in market value as many companies, including Pets.com, collapsed. Today's selloff in enterprise software stocks reflects ongoing volatility as investors assess the impact of artificial intelligence on future growth.

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Story summary

Morgan Stanley analysts say the recent selloff in enterprise software stocks, led by Microsoft and Salesforce, presents attractive entry points for investors.
They acknowledge concerns about artificial intelligence impacting software companies but say the fundamental tech outlook remains strong.
They note revenue growth expectations for major tech stocks are at multi-decade highs.
The stance is mixed, with some analysts advocating investment while others recommend a hold on certain stocks.

1 / 2