Software Stocks Face Earnings Gut Check After 17% ETF Rally
NDX sits 28% above its 52-week low of $22,841.417.
Summary
Software stocks have staged a sharp rebound, with the IGV ETF up 17% since July 23, outpacing the Nasdaq 100. This week's earnings from Intuit, Salesforce, CrowdStrike, Autodesk, and Workday will test whether the rally has legs. Early reporters have beaten estimates by an average 10%, and M&A speculation—including Silver Lake's reported interest in Workday—is providing a floor. Valuations remain below historical averages, with the software index at 27x forward earnings versus a 10-year average of 34x. The key question is whether AI disruption fears are overblown or merely delayed.
At the time of this announcement, NDX was trading at $29,171.44 on NASDAQ in the Technology sector. The 52-week trading range was $22,841.42 to $30,762.20. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Moneycontrol.