What's happening in the software sector?
Depends where you look
The ETF tracking software companies has fallen about 32% from its peak in recent months.
Many stocks have fallen tens of percent from their all-time highs.
CRM stock has fallen more than 50% from its all-time high.
IT stock has fallen more than 75% from its all-time high!
ROP stock has fallen over 40%
NOW stock has fallen close to 60% from its all-time high.
It really looks like a bloodbath...
Why is this happening?
The answer, if it weren't scary, might be funny.
Of course, developments in the software world are what's bringing down the software sector.
The immense development of AI agents is investors' biggest fear and the greatest threat in history to the business model of software companies.
What's interesting is:
that amidst the chaos, when filtering out the noise and examining smart money movements, perhaps a slightly different picture emerges...?
We found that many insiders and senior executives in software companies are buying stocks like never before!
Note the data:
At ROP, insiders bought stocks totaling $38,000,000 in the last six months. (at price levels between $358 and $450)
A member of Congress also bought stocks in the last month for $15,000 - $50,000.
And not only that:
A look at the institutional sector also reveals an interesting situation:
Out of the 6 largest institutional positions, only one reduced its holding.
Vanguard, the largest shareholder, increased its position by more than 12%.
At IT, two directors bought over $10,000,000 in stocks in the last year.
At CRM, insiders bought $26.5 million in stocks in the last six months!
A member of Congress, David Taylor, also bought CRM stocks in the last month for $15,000 - $50,000.
In NOW stock, insiders bought $3,000,000 in stocks in the last six months, with the entire management team announcing the cessation of their automatic stock selling program.
Additionally, two politicians bought NOW stocks since the beginning of the year.
An interesting situation?
While the market reacts to artificial intelligence threats to software company stocks, with declines of tens of percent from all-time highs...
Many senior insiders, politicians, and institutional investors are taking advantage of the situation to buy more stocks.
Due to space constraints, we only reviewed a handful of examples from well-known software companies,
but the truth is that this is a broad trend across the entire technology sector, as can be seen in the chart we attached above.
We are monitoring