Stocks in software fell on Monday after a two-month rally for enterprise software and cyber-security stocks culminated in the broader software industry taking a hit. The stocks have given way to profit-taking, resulting in a slew of shares taking a hit.
Salesforce.com (CRM), Splunk (SPLK), and many others have taken a hit this week. IBD’s Computer Software Enterprise and Computer Software Security groups have also had their worst days since the start of the new year. Both of these groups had bottomed on December 24th as they sold off their technology stocks. It is most likely that this news is the result of a sell-off rather than a sign of another tech stock tumble. Several tech stocks have performed below expectations despite reporting better-than-expected earnings, which could be a sign of profit-taking.
CRM shares fell 3.7% on Monday, while Twilio (TWLO) fell 6%. Atlassian (TEAM), Splunk (SPLK), and Okta (OKTA) fell 5.6%, 5%, and 8%, respectively. Despite this news, it is unlikely that the software industry or the broader tech industry will take a serious tumble soon.