Software Is Finally Cracking - And The Great Rotation Is Picking Up Speed
Seeking Alpha
February 15, 2026
AI-Generated Deep Dive Summary
The software sector is experiencing a significant downturn, with prominent companies like Intuit facing sharp downgrades in their stock ratings. This decline aligns with the accelerating "Great Rotation," a trend where investors are shifting away from high-growth tech stocks toward more stable sectors and industries. The article highlights the importance of focusing on businesses with durable models and competitive advantages—often referred to as "wide moats"—that can weather economic uncertainty.
The Great Rotation reflects broader market dynamics, including rising interest rates and heightened concerns about inflation and economic growth. Investors are increasingly prioritizing companies with strong cash flow generation, predictable revenue streams, and defensive characteristics over those reliant on speculative growth narratives. This shift has seen tech-heavy stocks underperform while sectors like utilities, healthcare, and consumer staples gain favor.
For readers interested in finance, understanding the drivers behind the Great Rotation is crucial for making informed investment decisions. The trend underscores the importance of diversification and risk management in a volatile market environment. As the rotation continues, identifying companies with resilient business models and sustainable growth will likely remain a key focus for investors seeking long-term returns amid ongoing macroeconomic challenges.
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Originally published on Seeking Alpha on 2/15/2026