Another day, another 52-week low.
It seems that instead of finding fresh support, the value of software companies keeps discovering new basement levels to descend into. This afternoon, software stocks were off 3% or so, while the broader Nasdaq Composite was down around 2% in midafternoon trading.
The dramatic collapse in the value of software stocks has been a key story starting when the trend began in late 2021. Since then, the value of a dollar of software revenue has been cut, slashed, beaten back, and then kicked in the shins.
How much decline are we talking about? Here’s one way to examine the situation, the chart of the Bessemer Cloud Index: