Software stocks have underperformed as risks rise, but significant risk 'priced in': MS
Warchi


Software stocks significantly underperformed this year, having fallen on average 8% since the short-lived bear rally earlier this month, compared to a 3% for the broader market, Morgan Stanley said.
However, the firm noted that even as investors deal with risks such as budget revisions, macro issues and currency headwinds, it looks as if the multiples on software stocks suggest that "significant risk is priced in."

Impacted stocks: Adobe (NASDAQ:ADBE), Autodesk (ADSK), Confluent (CFLT), Salesforce (NYSE:CRM), CrowdStrike (CRWD), Datadog (DDOG), DocuSign (NASDAQ:DOCU), Fortinet (FTNT), Hubspot (HUBS), Intuit (INTU), MongoDB (MDB), Microsoft (NASDAQ:MSFT), Cloudflare (NET), Nice (NICE), ServiceNow (NOW)
Last week, investment firm UBS said Wall Street had become "too negative" on the Adobe (ADBE) Figma deal.