The stock market keeps setting new records, yet the software segment trades as if it is headed for extinction.
Guggenheim Securities calls that divergence the buying opportunity of a career and the fear driving it a hallucination.
Software — as tracked by the iShares Expanded Tech-Software Sector ETF (NASDAQ:IGV) — is down 12% year to date, trailing the S&P 500 by 20% and the Nasdaq by 25%.
That comes on top of roughly 11% of underperformance against the S&P in 2025.
The selloff has a nickname on trading desks: the “SaaSpocalypse.” The fear is that agentic AI will hollow out demand for the seat-based subscription software enterprises run on.
