The available evidence does not identify the two software stocks or verify that either is more than 35% below its record high. Naming picks or presenting that drawdown as fact would be speculation. What can be assessed is the broader question behind the headline: whether a software share-price fall reflects a weaker business, an AI-related threat, or simply a change in what investors are willing to pay.
Which two software stocks are down more than 35%?
The two companies in the headline remain unidentified. No verified company names, record highs, current share prices, or drawdown calculations are available, so there is no sound basis to call either stock a buy or to supply a percentage decline. Do not treat other companies discussed in investment commentary as substitutes for the missing picks.
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Forager Funds has published commentary on a software-sector sell-off and concerns that AI could let customers build alternatives to established products. Its commentary names companies such as Catapult, Bravura, and Sage as examples in its own portfolio discussion, but it does not establish that any of them is one of the two stocks in this headline. The examples and figures on its page belong to those companies and the periods Forager discusses, not to the unidentified picks. Forager Funds’ news and commentary
Why a 35% share-price decline does not prove a stock is cheap
A drawdown measures the change in a share price from a prior peak. It does not, by itself, say whether the company’s business is improving or deteriorating, whether the peak valuation was reasonable, or whether the current price offers good value. A stock can fall sharply and remain expensive if expected growth has weakened; it can also fall while its underlying business remains sound.
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To evaluate a specific software company, first verify the share-price comparison: identify the exchange and share class, the record-high price and its date, the latest price and date, and whether the calculation uses intraday prices or closing prices. Then assess the business rather than relying on the chart alone.
How AI could affect established software businesses
Forager’s view is that AI may help software incumbents as well as challenge them. In its commentary, it argues that companies with valuable data and systems deeply embedded in customer workflows may have advantages: AI could improve their products and reduce development or support costs. It also recognizes the other side of the risk: customers could leave, pricing could come under pressure, or products could become less valuable. These are Forager’s investment opinions, not verified findings about the two unidentified stocks. Forager Funds’ discussion of software and AI
For a particular company, the relevant question is not simply whether it uses AI. Consider whether customers rely on its proprietary data, integrations, and workflows; whether a competing AI tool can replace the product at lower cost; and whether the company can capture value from new features without weakening its existing revenue model. The available evidence does not answer those questions for the unnamed stocks.
What to verify before considering either stock
Once the companies are identified, use current market data and company filings to check the following. These are due-diligence questions, not conclusions about either stock:
- Drawdown and timing: Confirm the record high, its date, the current or article-date price, and the calculation method. A claim tied to an earlier date may no longer describe the present price.
- Revenue and earnings: Review reported trends and management’s outlook. Separate temporary effects from changes in demand, pricing, or customer adoption.
- Cash generation and debt: Check operating cash flow, cash needs, debt maturities, and the company’s ability to fund operations and investment.
- Customer health: Look for retention, renewals, customer concentration, and expansion or contraction in existing accounts where the company reports those measures.
- Valuation assumptions: Compare the share price with plausible expectations for growth, margins, and cash generation. A large decline alone does not establish that those expectations are conservative.
- AI exposure: Examine both the possibility that AI makes the product more useful or cheaper to deliver and the possibility that it enables substitutes, reduces pricing power, or weakens customer demand.
What the available evidence supports—and what it does not
Forager explicitly says its internal fund views are not recommendations to buy, sell, or hold a security. Its comments can inform a general discussion of software-sector risks, but they are not personalized investment advice and do not validate the headline’s picks. The companies’ identities, exact drawdowns, current financial condition, valuation, and company-specific risks remain unverified. Forager Funds
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