Stop Worrying About the Software Armageddon and Buy These 5 Stocks Now

Core Viewpoint - The software sector is currently experiencing a significant selloff, which analysts believe is overblown and not reflective of the actual market conditions. Companies like Palantir, Microsoft, CrowdStrike, Snowflake, and Salesforce are highlighted as potential investment opportunities despite the prevailing negative sentiment [3][4][30]. Group 1: Palantir (PLTR) - Palantir is recognized as a leading software company specializing in data integration and AI-driven decision platforms, with a market cap of $332.6 billion and a stock price increase of 20% over the past year [5][6]. - For Q4 2025, Palantir reported revenues of $1.4 billion, reflecting a 70.5% annual growth rate, and earnings per share (EPS) of $0.25, up 78.6% from the previous year [6]. - Analysts have rated PLTR stock as a "Moderate Buy" with a mean target price of $198.28, indicating an upside potential of about 52.5% from current levels [8]. Group 2: Microsoft (MSFT) - Microsoft, valued at $3.1 trillion, is a major player in the software industry, although its stock has decreased by 5% over the past year [10]. - For the quarter ended December 31, 2025, Microsoft reported revenues of $81.3 billion, a 16.7% increase year-over-year, with cloud business revenues rising by 26% to $51.5 billion [12]. - Analysts have assigned a "Strong Buy" rating to MSFT stock, with a mean target price of $602.57, suggesting an upside potential of roughly 53% [14]. Group 3: CrowdStrike (CRWD) - CrowdStrike is a leading cybersecurity technology company with a market cap of $104.7 billion, although its shares are down 10% over the past year [16]. - The company reported Q3 revenues of $1.23 billion, up 22% year-over-year, and EPS of $0.96, which exceeded the consensus estimate [17]. - Analysts have rated CRWD stock as a "Moderate Buy," with a mean target price of $559.21, indicating an upside potential of about 48% [19]. Group 4: Snowflake (SNOW) - Snowflake operates a cloud-based data platform and has a market cap of $56.6 billion, with its stock down 13% over the past year [21]. - In Q3 2025, Snowflake reported revenues of $1.21 billion, reflecting a 28.5% annual growth, and EPS of $0.35, up 75% from the previous year [22]. - Analysts have given SNOW stock a "Strong Buy" rating, with a mean target price of $277.07, suggesting an upside potential of about 77% [24]. Group 5: Salesforce (CRM) - Salesforce, a pioneer in cloud-based CRM software, has a market cap of $418.6 billion and has seen its stock decline by 43% over the past year [26]. - For the third quarter of fiscal year 2026, Salesforce reported revenues of $10.3 billion, a 9% increase year-over-year, and EPS of $3.25, surpassing estimates [27]. - Analysts have assigned a "Strong Buy" rating to CRM stock, with a mean target price of $329.27, indicating an upside potential of about 73% [29].