Apple(US:AAPL) CNBC·2026-01-29 18:55Market Overview - The stock market experienced a sharp pullback, particularly in the software sector, with the S&P 500 and Nasdaq recovering slightly from their worst levels during the session [1] - Microsoft shares declined by 12%, with management indicating that better allocation of compute resources towards Azure could improve revenue growth [1] - If Microsoft had allocated all new GPUs to Azure, year-over-year cloud revenue growth could have reached 40% instead of the constrained 38% [1] Software Sector Analysis - The decline in Microsoft is part of a broader trend affecting enterprise software as a service (SaaS) companies, with ServiceNow dropping 12% despite better-than-expected results [1] - Salesforce shares fell by approximately 7% following ServiceNow's earnings reaction, indicating a market revaluation of SaaS companies and compressing price-to-earnings multiples [1] - SAP's shares also fell significantly after its cloud backlog increased less than anticipated, reflecting the overall negative sentiment in the software sector [1] Cybersecurity Companies - Cybersecurity firms like CrowdStrike and Palo Alto Networks saw significant stock declines despite their business models being less affected by AI advancements [1] - The importance of cybersecurity solutions is expected to grow as AI-related threats become more sophisticated, yet both companies trade at high price-to-earnings multiples [1] - CrowdStrike's stock, trading at about $438, is viewed as a potential buying opportunity, while Palo Alto's weakness is also seen as an opportunity [1] Upcoming Earnings Reports - Apple is set to report earnings, with a focus on iPhone demand and management's comments on margins amid rising memory costs [1] - Other companies scheduled to report include SanDisk, Western Digital, Deckers, and Stryker, with American Express, Verizon, Chevron, Exxon Mobil, Sofi, Colgate Palmolive, and Air Products & Chemicals reporting before Friday's open [1]