Pain in software may continue, says iCapital's Basak

Watch on YouTube ↗  |  February 04, 2026 at 22:50  |  3:59  |  CNBC
Speakers
Sonali Basak — Global Finance Correspondent, Bloomberg
Steve Sosnick — Chief Strategist, Interactive Brokers

Summary

CNBC's Closing Bell Overtime discusses a sharp selloff in software stocks driven by AI disruption fears, with the IGV ETF down 13% in a week. Sonali Basak of iCapital says indiscriminate selling may create opportunities in incumbent software winners, while Steve Sosnick of Interactive Brokers warns that software's private-equity valuation floor has vanished and AI is disrupting the group. Sosnick notes retail investors are avoiding most software dips but buying Microsoft and Oracle, and also bought silver on the dip.

  • Software stocks sold off sharply amid AI disruption fears, with IGV down 13% in a week.
  • Sonali Basak sees opportunities emerging in incumbent software names that can win with AI.
  • Steve Sosnick says private capital is overexposed to software and can no longer provide a take-private valuation floor.
  • Sosnick argues AI is disrupting software companies, and retail is not buying the group's dips.
  • Retail flows show buying in Microsoft and Oracle, exceptions to weak software dip-buying.
  • Retail investors also bought silver on the dip, with SLV among the most active tickers.
  • Panel discusses whether the software selloff is a contrarian buying opportunity or a continuing pain trade.
Ideas
Sonali Basak Global Finance Correspondent, Bloomberg 1:26
Software incumbents are contrarian opportunity.
Software has been indiscriminately sold amid AI disruption fears, but not all software will be affected equally, and incumbent software players that ultimately win from AI are worth looking at soon, if not now.
IGV MED
Steve Sosnick Chief Strategist, Interactive Brokers 1:37
Software lost private-equity valuation floor.
The AI trade has a flip side: software companies are the group being disrupted by AI rather than benefiting from it, and retail investors are not buying software dips for that reason, so the group remains unattractive.
IGV MED
Steve Sosnick Chief Strategist, Interactive Brokers 2:36
Retail buys Microsoft and Oracle dips.
Retail investors are not broadly buying software dips, but Microsoft and Oracle are exceptions; Microsoft saw unusually persistent buying on its drawdowns and Oracle also saw buying as a software name, indicating those software names have retail support.
MSFT ORCL MED
Steve Sosnick Chief Strategist, Interactive Brokers 3:39
Retail bought silver dip via SLV.
Retail investors bought silver on the dip, making SLV one of the most active tickers on the platform, and also bought leveraged silver products, signaling strong retail dip-buying interest in silver.
SILVER SLV MED
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This CNBC video, published February 04, 2026, features Sonali Basak, Steve Sosnick discussing IGV, MSFT, ORCL, SILVER, SLV. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Sonali Basak, Steve Sosnick  · Tickers: IGV, MSFT, ORCL, SILVER, SLV