Core Viewpoint - There are potential opportunities for significant gains in the software sector for investors willing to take a contrarian approach, as software stocks have faced substantial declines recently [1]. Group 1: Market Performance - Software stocks have been severely impacted in recent weeks, continuing a downward trend into the new year [1]. - On January 2, the VanEck Semiconductor ETF (SMH) outperformed the iShares Expanded Tech-Software Sector ETF (IGV) by 6.6 percentage points, marking the second-largest daily divergence on record according to Dow Jones Market Data [1].

One of the most actively traded securities on Tuesday, SoFi Technologies Inc (NASDAQ:SOFI) earned this distinction dubiously, with its security falling about 9%. Adding to the perplexing development is that there doesn't seem to be a distinct catalyst for the implosion. Possibly, SOFI stock is responding to concerns associated with excessive valuations, along with weakness in the cryptocurrency sector. Still, the red ink may be hiding a contrarian opportunity.Fundamentally, experts may point to the "rich" m ...