It’s a curious thing, this current nervousness around software stocks. You’d think, after decades of steady growth, everyone would be content. But no. Now, it seems, the mere suggestion of artificial intelligence – a technology still largely in the realm of science fiction for most of us – is enough to send investors scrambling for the exits. They’re selling as if the robots are about to start demanding stock options. It’s a bit much, really.
For years, these software companies enjoyed what’s politely called a ‘moat’ – a lovely image, isn’t it? – meaning they were so dominant, so deeply entrenched in their markets, that competition was minimal. This translated into healthy profits, predictable revenue, and, naturally, inflated valuations. But AI, it’s claimed, could erode those advantages. It can write code, extract information… even, apparently, compose passable poetry. (Though I suspect Keats needn’t worry just yet.) The question is, has the market overreacted? And, more importantly, can we profit from the resulting panic?
The sell-off has been, shall we say, enthusiastic. Some perfectly good companies are trading at prices that seem… optimistic. Here are two that, after a bit of poking around, appear to be offering a reasonable opportunity. Not a guaranteed fortune, mind you, but a decent chance to make a bit of money without resorting to extreme measures.
1. ServiceNow
There’s a certain inevitability to ServiceNow’s success. Corporations, bless their hearts, are perpetually obsessed with efficiency. It’s in their DNA. And ServiceNow, in essence, is the efficiency engine. It streamlines, automates, and monitors pretty much everything – from IT support tickets to customer complaints. It’s the digital equivalent of a really, really good office manager. And a good office manager, let me tell you, is worth their weight in gold.
ServiceNow, wisely, has embraced AI. Not as a replacement for its existing technology, but as an enhancement. It’s a bit like adding a turbocharger to an already powerful engine. The idea, presumably, is to stay ahead of the curve. And it’s a sensible strategy. Companies are notoriously reluctant to rip out systems that are already working, even if something newer and shinier comes along. Offering AI tools proactively makes it far less likely that a competitor can swoop in and tempt them with promises of radical change.
The stock, currently trading at around 25 times forward earnings – a 54% drop from its peak – looks, frankly, rather appealing. Analysts estimate earnings growth of nearly 24% annually. That’s not bad. Not bad at all. It may well turn out that this recent tumble will be viewed, in a few years’ time, as a rather obvious buying opportunity.
2. Intuit
Millions of people and businesses rely on Intuit’s products – TurboTax, Credit Karma, QuickBooks, Mailchimp – to manage their finances. It’s a staggering reach. And yet, the stock has taken a beating recently, falling over 50% from its high. At a price-to-earnings ratio of just over 25, it hasn’t been this low in over a decade. Is this because AI is about to render all that financial software obsolete? I seriously doubt it.
Intuit’s products benefit from something rather crucial: trust. And compliance. People are, understandably, hesitant to entrust their taxes or company finances to an algorithm, no matter how clever. An AI might be able to write a sonnet, but it can’t be held liable for mistakes. And mistakes, when it comes to money, can be… unpleasant. Like ServiceNow, Intuit is proactively integrating AI into its existing products, leveraging decades of accumulated data to improve the user experience. It’s a sensible approach.
The stock wouldn’t have gotten this cheap if there were a genuine risk of complete disruption. While nothing is ever certain, the worst-case scenarios seem rather unlikely here. Once the AI panic subsides, Intuit stock could mount a significant comeback. And that, my friends, is where the opportunity lies.
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2026-02-22 00:32