Jim Cramer: The Market Has Turned Against Software Stocks and This Metric Explains Their Downfall

Jim Cramer: The market has turned against software stocks and this metric explains their downfall

It's all about the price-to-earnings multiple, Cramer said, describing the figure as the "secret sauce" of a stock's price.

Software stocks suffer steep selloff, widening the gap with hot chip stocks

A look at the best and worst S&P 500 stocks this year shows how tech investors have piled into semiconductor plays and bailed on software. Article Attribution | Read More at Article Source The post Software stocks suffer steep selloff, widening the gap with hot chip stocks appeared first on RocketNews.

The Great AI Reshuffle of 2026: What's Behind the Recent Slump in Software Stocks?

As investors have shifted away from software providers and toward hardware and specialized AI winners, software stocks have taken a hit. Here's what's going on in this sector right now.

Cramer’s Verdict: Shrinking P/E Multiples Crush Software Giants Amid AI Fears

Enterprise software stocks are in freefall, hammered by investor fears that artificial intelligence will upend their lucrative business models. On his CNBC show “Mad Money,” Jim Cramer pinpointed a single metric driving the carnage: the relentless compression of price-to-earnings multiples. “The market has turned against software stocks and this metric explains their downfall,” Cramer declared, as shares of high-quality names like ServiceNow plu…