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SaaS Rout of 2026: Software Stocks Trade at Discount to S&P 500 for First Time in History
SaaStr reports that SaaS forward P/E multiples have fallen below the S&P 500 average for the first time ever, after the February 'Software-mageddon' erased $800B in market value in five trading sessions. A Goldman Sachs software basket trades at 22x forward earnings — less than half its decade average. The catalyst: Anthropic's February Claude Cowork launch with legal automation plugins that directly threatened legal-tech business models. Despite strong fundamentals (21% projected earnings growth), investors are pricing in AI-driven seat compression across the sector.
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