Software Stocks: Seriously?

So, everybody’s talking about AI, right? Like it’s going to solve things. Honestly, it just creates new problems. And now, apparently, it’s messing with software stocks. Like they weren’t complicated enough already. I mean, you pay for a subscription, then they change the interface, and suddenly you need a PhD to find the button you used to click without thinking? It’s infuriating. And now the market’s acting like this is some sort of catastrophe? It’s just… a lot.

The iShares Expanded Tech-Software Sector ETF is down over 22% since December 10th. Twenty-two percent! People are panicking. And Wall Street, naturally, thinks this is a “buying opportunity.” As if they know anything. They’re the ones who got us into this mess in the first place. They see a dip and suddenly it’s a “compelling opportunity.” It’s always something with these people.

Apparently, there are three stocks Wall Street thinks are undervalued. Three. Like that’s going to fix everything. Let’s look at these “opportunities,” shall we? I have a feeling this is going to be a waste of time, but what else am I doing?

Datadog: 61% Upside? Really?

Datadog. Sounds like a breed of dog you’d need a special permit to own. They monitor cloud stuff, apparently. Which means they collect data about what you’re doing. And then they sell it. Or something. The stock’s been hammered, down from nearly $200 to around $120. Good. Maybe people are finally waking up. They say AI might take over some of their functions, but they’ll also use AI to… automate things? It’s circular logic! It’s like saying they’re going to fix a problem by creating a bigger problem.

Some analyst, Gil Luria, says “nothing about the software business model has actually changed.” Of course, he says that. He’s incentivized to say that. He wants you to buy the stock. They’re projecting 20% revenue growth in 2026. Twenty percent. That’s it? And they expect me to be excited? Apparently, they had a nine-figure deal with OpenAI. Of course they did. Everyone’s jumping on the AI bandwagon. It’s the new tulip mania.

Thirty out of thirty-three analysts have a buy rating. Thirty! That’s statistically meaningless. It’s a herd mentality. They’re all afraid to be the first one to say the emperor has no clothes. TipRanks says there’s 61% upside. Sixty-one percent. I’ll believe it when I see it.

Snowflake: 63% Upside? Don’t Even.

Snowflake. It sounds like a winter sports equipment company. They store data. Immense amounts of data. And then they let you analyze it. And share it. Securely, they say. It’s all just… data. They’re on multiple clouds – Amazon, Microsoft, Google. So they’re just… a middleman? A very expensive middleman. The stock went public in 2020 and was a “market darling.” Now it’s not. Shocking.

They’re struggling to convince investors they have an AI strategy. Well, of course they are. They’re just trying to catch up. They’re not profitable. And they’ve disappointed investors with their guidance. It’s a disaster. But they’ve partnered with Palantir and OpenAI. Because everyone needs to be in on the AI action. It’s exhausting. Thirty out of thirty-three analysts have a buy rating. Seriously? Sixty-three percent upside. I’m starting to suspect everyone’s in on a joke and I’m the only one who doesn’t get it.

Microsoft: 47% Upside? Oh, Please.

Microsoft. The behemoth. They’re expected to benefit from the AI boom. Of course. They have the resources to buy their way into anything. But the stock is down 23% in the last six months. And they have a lot of software businesses. Office products. Excel. Word. The basics. The stock sold off after their earnings report. Lower-than-expected growth in their Azure cloud business. The cloud. It’s always about the cloud. Investors expect “capital expenditures” and “AI infrastructure.” It’s a bunch of jargon designed to confuse you.

UBS says Microsoft 365 revenue growth hasn’t sped up, despite Copilot having 15 million paid users. Copilot. Another AI assistant. Automating tasks. It’s all just… layers of complexity. It proves that AI isn’t necessarily fixing anything. Or bolstering anything. It’s just… there. Thirty-four out of thirty-five analysts have a buy rating. Unbelievable. Forty-seven percent upside. For one of the largest companies in the world. It’s just… ridiculous.

So, there you have it. Three stocks with “upside.” I’m not buying it. I’m going to stick to things I understand. Like complaining about the Wi-Fi.

2026-02-08 00:52

Datadog: 61% Upside? Really?

Snowflake: 63% Upside? Don’t Even.

Microsoft: 47% Upside? Oh, Please.

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