Mar. 4 at 3:59 PM
Can't help but draw the comparisons being made across software names
$IGV $NOW $ADBE $CRM etc... to those said (by a lot of the same people) about
$UNH
"UNH isn't going anywhere", "business will thrive", "buy the dip", "back to
$500+" etc...
Now with software you have the same arguments, and they aren't wrong, software stocks are great businesses and are probably less likely to be completely replaced by AI then feared, but that doesn't mean they'll just recover to previous prices.
This is a rerating of the industry as there is doubt that the level of growth baked into these names will happen. Same with UNH after legislation cracked down on healthcare (analogous threat as AI to software).
Just because investors paid 10x sales in the past doesn't mean they will again.
Once valuation multiples are reset it takes quarters and years to re-earn and re-rate back to where they were, and many of these businesses are pretty fairly, or even overvalued now...
The market does what the market wants.
