---
title: "Has software stocks sell-off reached a bottom yet?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/276301916.md"
description: "Software stocks are experiencing a significant sell-off, termed “SaaSmageddon,” despite strong Q4 earnings. This decline has erased hundreds of billions in market value due to high valuations, increased capital expenditures, and fears of AI disrupting traditional business models. However, Citi's analyst Tyler Radke suggests that the worst may be over, indicating that the market is nearing a bottom."
datetime: "2026-02-19T05:12:28.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276301916.md)
  - [en](https://longbridge.com/en/news/276301916.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276301916.md)
---

# Has software stocks sell-off reached a bottom yet?

Software stocks are currently weathering what market observers are calling a “SaaSmageddon”. Despite a string of solid Q4 earnings reports featuring “beats and raises,” the industry has been hit by a wave of indiscriminate selling that has wiped out hundreds of billions in market value. This rout was triggered by a toxic cocktail of high valuations, surging capital expenditures, and a growing fear that generative artificial intelligence (AI) might disrupt legacy business models. However, Citi’s senior equity research analyst Tyler Radke believes the worst of the bleeding may be over, and that “we’re getting close to a bottom” now. Why Citi believes software sell-off is approaching a bottom Radke’s optimism lies primarily in the “disconnect” between stock performances and fundamental…

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