OpenAI burns $billions per week. Good luck with your optimism
Microsoft, Other Software Stocks Report Earnings Soon. Here's How to Trade It
Software stocks have been absolutely hated since autumn. Earnings offer a potential reprieve and an opportunity for traders.The iShares Expanded Tech-Software Sector exchange-traded fund is down 19% from a record high it reached in September. The pain is worst in the small to midsize names, with HubSpot down 42%, for example, and Zscaler down 30% in the same stretch. Even Microsoft is down 13% from a brief peak in September.The problem is that the market is worried about long-term growth, especially for the hundreds of smaller firms that provide businesses with niche software products that could face competition from artificial intelligence.There is certainly reason for concern. Products from companies such as OpenAI and Anthropic could eventually have business applications, which could make any given software company's business obsolete one day down the line.Larger profits mean these stocks may have nowhere to go but up, especially because they are cheaper now. While the stocks have d
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