Goldman Sachs Sees Value in Beaten-Down Software Stocks

Overview

• Software shares rebounded as the iShares Expanded Tech-Software ETF rose more than 4% in a broad move, with a fresh Goldman analysis cited as a possible spark.
• Goldman Sachs said the sector’s underperformance now offers attractive entry points relative to expected growth.
• The bank pointed to lighter balance sheets across software, decade‑low valuation premiums, a big‑tech premium near the market, and a tech price‑to‑earnings ratio now below staples and industrials.
• The bounce followed a bruising start to 2026 that left the software ETF down about 30% through April 10 while the S&P 500 was roughly flat.
• AI news has kept volatility high, including Anthropic withholding its Mythos model over security concerns, which coincided with a sell‑off in cybersecurity stocks.