Software is flexing its muscles, showing AI is not killing the sector. Twilio, Atlassian, Cloudflare and JFrog all showed better-than-expected fundamental strength, setting software up for a strong session. x.com  x.com 

Palantir looks set up well into its earnings report because investors are rewarding software companies that beat estimates, as Twilio and Atlassian just showed. Its 20% pullback in 2026 is milder than most software names. It is a speculative bet on the print. x.com 

Twilio is one of the cleanest AI beneficiaries in public software, as more AI communication means more SMS and especially voice traffic; AI is likely positive for it for at least 2-3 years. It is the developer-default CPaaS and a critical layer for voice AI, telco integration can't be vibecoded away, and models usually recommend it. It gave its strongest Q1 growth guide in three years and trades at 3x EV/ARR. The risk is that developer mindshare matters less if AI assistants favor rivals. x.com 

Braze's post-earnings selloff over falling gross margins may reverse, as happened at Twilio. Twilio's gross margin fell from 55% to 48% as messaging volumes rose, yet the stock nearly tripled once growth reached the mid-teens. A post the author replies to argues Braze is a complex infrastructure tool for microtargeting customers, not a messaging app that can be vibe-coded, and that it is taking share from Salesforce and Adobe with reaccelerating organic growth. x.com 

Software valuations are at 10-year lows, with a forward PEG ratio of 1.43 that is cheaper than the S&P 500's, which looks enticing unless software is truly dead. The software ETF is at a key crossroads, still below a bearish trendline in place since October despite a 3% Friday gain; a direct breakout would likely complete the bottoming phase, though it could still pull back to form a fuller inverse head and shoulders. x.com  x.com 

High-quality software stocks such as ServiceNow, Cloudflare, Figma and Palantir look set to gain as money eventually rotates out of crowded semis, memory, data centers, AI infrastructure, space and defense. Software is underloved, and these names rose in sympathy with Snowflake's strong earnings, possibly the start of a rotation. The quiet third month of the quarter is a good time to position for gains into mid-July earnings, and insider buying is a signal worth following. x.com 

Palantir, Salesforce and Adobe are best avoided amid AI software disruption fears, even as best-of-breed software names. Cult stocks need constant momentum, and once it breaks, valuation, rotation and technical selling hit together, as happened with Tesla. Palantir getting back to $100 was never expected. x.com 

Big money is rotating out of overextended chips and AI plays, leaving semiconductor stocks that went straight up as exit liquidity for retail still piling in. The money is moving into software such as Accenture, Salesforce and ServiceNow, energy names Hawaiian Electric and Southern Company, and boring dividend stocks Whirlpool, Target and UPS. It is also flowing into China: Alibaba, JD.com, PDD, Baidu and Chinese internet stocks. x.com  x.com 

Snowflake looks like the next big mover: a leading software name one step from a base breakout while software sentiment sits at lows. x.com 

Software stocks have no real bull case; their recent strength is purely positioning-driven, so after perhaps a couple more weeks of gains they should resume falling. x.com