P/E multiples tell the story
Software & Services used to rank as the 3rd most expensive industry group, it now sits 9th (and has fallen from 3rd to 13th in Europe). Multiples are down roughly 5.8x globally (around 5x in Europe), a re-rating unmatched by any other industry group. Source: DB, TME
Coca-Cola ($KO) now has a higher P/E multiple than Microsoft $MSFT
Source: Stock Unlock
$IBM is down over 13% after Anthropic launches an AI tool that converts old COBOL code to modern languages.
AI code translation directly competes with IBM's legacy modernization consulting.
Another day, another AI scare.
A Citrini blog post titled “The 2028 Global Intelligence Crisis” triggered another AI-driven selloff in US equities on Monday. The Goldman Sachs Software At Risk Basket fell 6% yesterday and is now down 33% year to date. Source: Bloomberg, HolgerZ
Credit card stocks down big based on Citrini Research says AI agents will eventually transact on Stablecoin payment rails and bypass interchange.
Visa -4.4% Mastercard -6.3% American Express -7.9% Capital One -8.0% Source: Bearly AI @bearlyai
The Fwd P/E of the Tech sector is now at PAR with Consumer Staples.
In other words, the market is now valuing Tech at the same multiple as boring/slow growth Staples companies. That has only happened 3 times in the last 7 years: COVID, the 2022 Bear Market, and Liberation Day. Source: David Marlin
Looking for some squeeze opportunities?
Here are the highest short interest stocks with a market cap of more than $25 billion. Top five are $MSTR, $CHTR, $CRWV, $CVOIN and $KMB Source: Markets & Mayhem @Mayhem4Markets Goldman Sachs
2026 has so far seen the second strongest relative performance for equal weight versus cap weight since 1990
Source: Bespoke
