Tech’s Little Hangover: Stocks to Pick Through

Right. So, everyone’s been patting themselves on the back about the Dow hitting 50,000, the S&P doing…well, S&P things, and the Nasdaq generally showing off. It’s all very…optimistic. Almost aggressively so. But let’s be honest, shall we? Dig a little deeper, and the software sector? It’s nursing a bit of a hangover. A rather substantial one, actually. The iShares Expanded Tech-Software Sector ETF? Down nearly 28% from its peak. It’s like watching the cool kids stumble home after a particularly enthusiastic party.

And that, my friends, is where things get interesting. Because a bear market in software doesn’t mean the end of innovation, it just means…opportunity. The chance to pick through the wreckage and find the genuinely good stuff. The companies that aren’t just hype, but actual, functioning businesses. It’s a bit like forensic accounting, really. Only with more potential for profit. And less jail time, hopefully.

So, let’s talk about three of them. Three software stocks that, at the moment, look…tempting. I’m not saying they’re guaranteed winners. Nothing ever is. But they’re worth a look. A very close look. And yes, I fully expect to be eating my words at some point. That’s just how this works.

Salesforce

First up, Salesforce. A Dow component, which automatically makes it a bit…establishment. But don’t let that put you off. They’re the CRM kings, and that’s not an accident. They’ve built a solid business, and they’re not afraid to embrace the chaos that is artificial intelligence. Which, let’s be real, is either going to save us all or destroy us. There is no in-between.

They’ve got this Agentforce AI thing going on, which sounds terrifyingly efficient. Apparently, it helps businesses deploy virtual AI agents. Which, if you ask me, sounds like a prelude to the robots taking over. But hey, at least they’ll be polite about it. The platform has already generated over $500 million in annual recurring revenue. That’s a lot of polite robots. And their remaining performance obligation—basically, what people have already promised to pay them—is up 11% to $29.4 billion. Solid. Very solid.

And the valuation? A forward P/E ratio of just 14.8. That’s a 52% discount to its five-year average. It’s the cheapest it’s been since its IPO in 2004. Which, let’s be honest, is a long time ago in tech years. It’s like finding a vintage handbag in a charity shop. You know it’s a good deal. You just hope it doesn’t fall apart the moment you pick it up.

Adobe

Next, we have Adobe. The people who basically own our creative lives. Photoshop, Illustrator, all of it. They’ve been hit by the same AI fears as everyone else – the idea that generative AI will make their software redundant. Which is…possibly true. But also, people will always need to edit photos. Always. It’s a fundamental human compulsion.

They’ve incorporated AI into their Firefly platform, and their digital media segment is still growing at a respectable 11.5%. They’re generating a ton of operating cash flow – over $10 billion last year – and buying back shares like they’re going out of style. Which, given the current market, might not be a bad idea.

Their forward P/E of 10.1 is 61% below its average since 2020. It’s a nearly 15-year low. It’s like stumbling upon a hidden gem. You snatch it up before someone else does, even if you’re not entirely sure what you’re going to do with it.

Okta

Finally, we have Okta. The cybersecurity people. Because, let’s face it, the world is a mess, and someone needs to keep our data safe. They’ve embraced AI as a growth catalyst, which is…sensible. And their Okta Identity Cloud platform is basically the digital bouncer for all our online accounts. It’s a necessity service. Hackers don’t take days off just because the market is down.

Their remaining performance obligation is up 17% to nearly $4.3 billion, and they’re generating a ton of operating cash flow. And their forward P/E of 24 might not sound like a huge discount, but it’s a meaningful drop from where it used to be. It’s like finding a slightly chipped teacup. It’s not perfect, but it’s still perfectly functional. And it has character.

So, there you have it. Three software stocks to consider. I’m not promising riches, or even a decent return. But they’re worth a look. And if they all go to zero? Well, at least we’ll have a good story to tell.

2026-02-13 13:13

Salesforce

Adobe

Okta

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