Jul. 22 at 6:45 PM
Software investors need to become stock pickers.
The Equal Weight Software ETF
$XSW is hitting multi-year highs versus the traditional Software ETF
$IGV.
The reason? Many of the largest holdings in IGV have lagged despite the broader software recovery.
Key names under pressure include
$MSFT,
$PLTR, ORCL, NOW, and
$CRM. This shows that the market is no longer rewarding the entire software sector equally. Investors are focusing more on individual execution, AI monetization, growth rates, margins, and valuation.
In the AI era, not every software company will win. The winners will be those that can turn AI adoption into real revenue and stronger free cash flow.
For investors, broad software exposure may not be enough. The opportunity is likely in identifying companies with strong
