High-Growth Software Stocks Hit Bargain Levels Amid Recent Selloff

A pronounced selloff across high-growth software stocks has pushed key names to levels not seen in over a year, prompting analysts to reassess their long-term value. Microsoft (MSFT), Adobe (ADBE), Salesforce (CRM), Snowflake (SNOW), and ServiceNow (NOW) have all experienced double-digit percentage declines in January 2026, with some stocks down 20% to 30% from their recent peaks despite strong underlying fundamentals. The sell-off, which began in late December, was fueled by a mix of macroeconomic concerns, rising bond yields, and shifting investor sentiment toward growth equities. However, despite these headwinds, revenue growth, margin stability, and recurring subscription models remain intact for the targeted firms. For example, Salesforce reported fourth-quarter revenue of $8.9 billion, up 17% year-over-year, while Snowflake posted a 28% increase in cloud revenue for the same period. Market metrics now suggest deep value: Microsoft trades at a forward P/E of 32, Adobe at 38, Salesforce at 25, Snowflake at 20, and ServiceNow at 27—levels below their five-year averages, particularly for companies with market-leading positions in enterprise software. These valuations, combined with robust free cash flow generation and double-digit revenue growth, are drawing attention from institutional and retail investors alike. The shift has already begun to influence trading activity. Options volume for ADBE and CRM spiked by over 150% in the past week, while institutional buying signals have emerged in quarterly filings. The broader technology sector, which had lagged in 2025, could see renewed momentum if the selloff stabilizes and confidence returns.