"Salesforce (CRM) is down 27% over the past year despite Wall Street hyping its Agentforce AI platform as a "medium-term growth engine." The stock's at $233.54, down 10.4% in just the past week. Snowflake (SNOW) fell 7.1% this week. The narrative? This selloff has gone too far. The reality? Software multiples remain elevated-CRM trades at 32x trailing earnings with a forward P/E of 18x, while SNOW sits at 16x price-to-sales despite burning cash with a negative 31% profit margin."
"Reddit (RDDT) is nosediving today, down 10% this week to $228.61. The stock trades at 116x trailing earnings and 25x sales, premium valuations that assume flawless execution. Yet Reddit sentiment data shows retail traders remained aggressively bullish through January 15. One wallstreetbets post titled "Quick $44k gain on RDDT $220 options in 15 minutes" drove sentiment scores to 82 (very bullish) on January 15 (at 3pm ET. By afternoon, sentiment collapsed to 33 (bearish) as reality set in."
Software stocks have experienced sharp declines while some narratives characterize the move as "overdone." Salesforce fell 27% year-over-year to $233.54 and dropped 10.4% in the past week, and Snowflake declined 7.1% this week. Software valuations remain elevated: CRM at 32x trailing earnings and an 18x forward P/E, SNOW at 16x price-to-sales with a negative 31% profit margin. Reddit slid 10% to $228.61 despite strong retail bullishness and premium multiples. Taiwan Semiconductor hit all-time highs with 30.3% revenue growth and a 43.3% profit margin, and NVIDIA showed substantial year-over-year revenue gains.
Read at 24/7 Wall St.
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