Core Viewpoint - The decline in software stocks is a significant investment trend in 2026, with major SaaS companies facing substantial losses due to fears surrounding AI's impact on their business models [1][2]. Group 1: Software Stock Performance - The Nasdaq-100 index is down approximately 3% year to date, while the S&P 500 index remains relatively unchanged [1]. - Major software companies have seen significant declines: Microsoft is down 16%, Shopify down 26%, Adobe down 27%, and Salesforce down 30% [2]. Group 2: Investor Concerns - Investors are worried that advancements in AI could disrupt the enterprise software business model, leading to vulnerabilities for established software companies [2]. - There are two primary concerns: the potential disruption of the software industry by AI and the fear that AI hyperscalers are overspending on infrastructure without generating expected returns [5]. Group 3: J.P. Morgan's Analysis - J.P. Morgan's research suggests that the current sell-off in AI-driven software stocks is exaggerated and based on "broken logic" [3][6]. - The firm argues that if AI is truly set to disrupt software companies, then AI stocks should be more valuable, indicating a disconnect in market logic [6]. Group 4: Investment Opportunities - J.P. Morgan encourages investors to consider purchasing "AI-resilient" software stocks that are likely to benefit from AI enhancements in their workflows, viewing the current sell-off as an "overshoot" [8].

Core Insights - Workday Inc is recognized as one of the S&P 500 stocks with significant upside potential following a leadership change [1] - Aneel Bhusri has returned as CEO, replacing Carl Eschenbach, who stepped down on February 9 [1][2] - The leadership transition is aimed at accelerating the company's focus on AI growth [2][4] Leadership Change - Carl Eschenbach has resigned as CEO and board member but will remain as a strategic advisor to Bhusri [2] - Mark Hawkins, vice chair and lead independent director, emphasized Bhusri's vision and connection to Workday's culture as key to navigating the evolving landscape [3] Market Reactions - Needham maintained a Buy rating on Workday with a price target of $300, indicating the leadership change is not due to sales issues but rather a need for agility in an AI-focused market [4] - Stifel reduced its price target from $235 to $175 while keeping a Hold rating, citing the stock's proximity to its 52-week low [5] - Stifel also noted that Eschenbach's exit was anticipated due to challenges faced since he became Co-CEO in 2022 [6] Financial Outlook - Workday confirmed that its fourth-quarter results will align with previous guidance, except for a restructuring charge affecting GAAP operating income [4] - There are expectations that fiscal 2027 guidance may fall below current forecasts, with concerns about operational weaknesses [6]

Autodesk Inc (NASDAQ:ADSK) is among the best S&P 500 stocks with highest upside potential. Autodesk Inc (NASDAQ:ADSK) has sued Google over trademark infringement, Reuters reported on February 9. According to the report, the issue is the word “Flow,” which Autodesk says it has been using to market its products since at least September 2022. From Workforce Cuts to Lawsuits: Autodesk Inc (ADSK)’s Bold Moves In the suit, Autodesk points out that Google adopted “Flow” as the name of its new AI-powered softwar ...

Adobe Inc (NASDAQ:ADBE) is among the best S&P 500 stocks with highest upside potential. On February 11, Bloomberg reported that Adobe Inc (NASDAQ:ADBE) had been hit with a lawsuit alleging that the company willfully used pirated books to train its AI models. The suit, which the report said was filed on February 9 in the US District Court for the Northern District of California, cites infringement of hundreds of thousands of books. This suit joins a similar one that was brought against the company in Decemb ...

Group 1: Company Performance - ServiceNow Inc reported Q4 2025 results with revenue of $3.57 billion, a 20.5% year-over-year increase, surpassing Wall Street expectations of $3.53 billion [3] - Earnings per share (EPS) for Q4 2025 was $0.92, exceeding the expected $0.88 [3] - The subscription business, which constitutes the majority of ServiceNow's revenue, grew 21% year-over-year to $3.47 billion [3] Group 2: Future Guidance - ServiceNow anticipates subscription sales for Q1 2026 to be between $3.65 billion and $3.66 billion, indicating a year-over-year growth of 21.5% at the midpoint [4] - The acquisition of Moveworks is expected to enhance subscription revenue by 100 basis points in Q1 2026 and for the full year [4] Group 3: Market Position and Analyst Opinions - Oppenheimer identified ServiceNow as one of the top US software stocks to watch, highlighting its potential to regain momentum through improved execution and strategic initiatives [1] - Truist reduced its price target for ServiceNow from $240 to $175 but maintained a Buy rating, emphasizing the importance of AI adoption for long-term value [2] - The software industry has faced challenges in monetizing AI, but companies like ServiceNow are seen as having significant upside potential [1][2]

Oracle Corp (NYSE:ORCL) is among the best S&P 500 stocks with highest upside potential. The company has won a contract to help the Centers for Medicare & Medicaid Services (CMS) modernize its systems. This deal was announced on February 11, and it involves provision of cloud services to support the federal health agency’s mission-critical systems. Oracle Corp (ORCL)’s Upside Potential: Federal Wins and Market Confidence Specifically, Oracle Corp (NYSE:ORCL) will consolidate and migrate certain CMS on-pre ...

Group 1 - Wall Street is misinterpreting the impact of artificial intelligence on enterprise software, leading to unrealistic pricing scenarios where AI tools rapidly replace traditional software platforms [1][2] - Large-cap software stocks, including Salesforce and ServiceNow, have seen significant declines, with shares down over 20% in the past month due to fears of AI disruption [3] - Despite concerns, enterprise customers remain committed to platforms like Salesforce and ServiceNow, with high switching costs and long-term contracts limiting immediate disruption [4] Group 2 - AI monetization in major software firms is still in its early stages and could enhance revenue growth rather than reduce it [4] - Analysts at JPMorgan also believe that the market is overestimating near-term AI disruption risks, suggesting a potential rebound [5] - The sell-off in Salesforce and ServiceNow is viewed as excessive, with both companies expected to play significant roles in the AI revolution [6]

First Quarter Fiscal 2026 Revenue of $19.5 Million,Reflecting a 10% Increase Year Over Year LOS ANGELES, Feb. 17, 2026 (GLOBE NEWSWIRE) -- Daily Journal Corporation (Nasdaq: DJCO), a publishing and technology company, today announced financial results for the three months ended December 31, 2025. Total consolidated revenue for the quarter was $19.5 million, representing a 10% increase from the $17.7 million reported in the prior-year quarter, driven primarily by growth at Journal Technologies. “Journal Tech ...

AI fear is running amok in the US equity market. For stock pickers, now might be the time to get greedy. Most Read from Bloomberg That’s what a growing number of Wall Street pros are saying as they survey the wreckage from a series of rolling selloffs tied to AI yips. Yes, artificial intelligence is likely to disrupt companies and put some of them out of business. But there’s little chance, the thinking goes, that wealth managers or real estate agents or insurance brokerages or logistics firms cease to ...

Group 1 - Piper Sandler has lowered its price target on Asana, Inc. (ASAN) to $14 from $19 while maintaining an Overweight rating, citing concerns over "seat-compression and vibe coding narratives" that could limit valuation multiples [1] - Citi analyst upgraded Asana to Buy from Neutral with an unchanged price target of $16, highlighting new management's potential to improve spending efficiency and drive sales reacceleration [2] - RBC Capital reduced its price target for Asana to $11 from $14, maintaining an Underperform rating, and noted that 2026 could showcase AI tailwinds for companies positioned for enterprise AI adoption [2] Group 2 - Asana, Inc. operates a work management software platform that helps individuals and organizations coordinate tasks, manage projects, track goals, and oversee workflows [3]