Big Software Stocks Rally in August Amid Strong Earnings
August marked a strong rebound for major software stocks, which had previously struggled earlier this year. The iShares Expanded Tech-Software Sector ETF (IGV) rose by 16%, outperforming the S&P 500's less than 3% gain during the same period. Salesforce (CRM), Palantir Technologies (PLTR), and Microsoft (MSFT) were among the top performers, with shares rising by approximately 40%, over 50%, and nearly 9%, respectively. The rally was driven in part by strong earnings reports from these companies that alleviated concerns about AI disruption. Analysts at Jefferies believe this momentum could continue into September, noting that fears of AI displacement are overstated. Upcoming earnings reports from cybersecurity firms like Palo Alto Networks (PANW) and Zscaler (ZS), following CrowdStrike's record quarter, may further bolster the sector’s optimism.
Tickers: $CRM $CRWD $IGV $MSFT $PANW $PLTR $XSW $ZS
Topics: AI disruption earnings reports software stocks tech ETFs