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Software slump resumes after high-profile companies issue underwhelming outlooks

The nascent recovery in software stocks has become unglued thanks to negative news both foreign and domestic.

2/11/26 10:32AM

Well, it was fun while it lasted.

The nascent recovery in software stocks has become unglued thanks to negative news both foreign and domestic:

Over in France, Dassault Systèmes suffered its worst-ever loss after the software company beloved by Nvidia CEO Jensen Huang posted disappointing Q4 results and 2026 sales and earnings guidance that fell short of estimates. JPMorgan analyst Toby Ogg said the results were “worse than even the most negative investors we’ve spoken to.”

Stateside, Unity Software is crumbling after issuing weak Q1 guidance, with both pillars of its business — the gaming engine and ad tech — facing competitive pressures from AI tools and new entrants.

That outlook will rejuvenate fears that swaths of the software industry (among others!) is at risk of having its high-margin, recurring revenue business models disrupted by this new technology. Unity peer AppLovin, which reports after the bell on Wednesday, is feeling the pain in early trading.

Atlassian, GitLab, Salesforce, ServiceNow, Adobe, and Oracle are among the other names selling off in sympathy.

(Teradata, on the other hand, is one of the exceptions that proves the rule on Wednesday, up nearly 40% after posting better-than-expected Q4 results and guidance.)

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

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