Ives Says He's Never Seen a Software Selloff Like This

Watch on YouTube ↗  |  February 05, 2026 at 22:08  |  3:18  |  Bloomberg Markets
Speakers
Dan Ives — Managing Director, Wedbush Securities

Summary

Dan Ives of Wedbush Securities says the software sector is undergoing a structural selloff unlike any he has seen in 25 years, with AI acting as a near-term headwind and valuations implying revenue and customer-base declines for companies like Salesforce and ServiceNow. He calls software a do-not-enter zone near term, but remains constructive on software's long-term AI use cases and specifically defends Amazon's need to spend heavily on AI/cloud capex. Ives also says the tech selloff is panic, the AI buildout is only in year three of an eight-to-ten-year cycle, and he still expects tech stocks to be up big this year.

  • Dan Ives calls the software selloff structural and unlike anything in 25 years.
  • He says AI is a near-term headwind for software, but software remains important for AI use cases.
  • He calls software a do-not-enter zone amid panic and investor capitulation.
  • He defends Amazon's AI capex, calling it necessary to defend AWS and monetize cloud/AI spending.
  • He notes Amazon was behind Microsoft and Google in AI but is playing catch-up.
  • He says the AI buildout is in year three of an eight-to-ten-year cycle.
  • He expects tech stocks to be up big this year despite near-term bearishness.
Ideas
Dan Ives Managing Director, Wedbush Securities 0:25
Software selloff creates do-not-enter zone.
Dan Ives says the software sector is in a structural selloff unlike anything he has seen in 25 years. AI is a near-term headwind, and current valuations for names like Salesforce and ServiceNow imply revenue declines or customer-base losses. He calls software a 'do not enter zone' even though software use cases remain important longer term.
IGV HIGH
Dan Ives Managing Director, Wedbush Securities 1:32
Amazon must spend to win AI cloud.
Amazon is the world's biggest cloud player and cannot afford to be light on capex if it wants customers moving to AI to stay with AWS. It was behind Microsoft and Google in AI, but is playing catch-up and going after the monetization of trillions of dollars in cloud/AI spending; Ives argues capex spending is necessary despite near-term investor criticism.
AMZN MED
Dan Ives Managing Director, Wedbush Securities 3:14
Tech stocks will rally this year.
Dan Ives says the current tech selloff is panic and that bears may win the day but not the year. The AI buildout is in year three of an eight-to-ten-year cycle, and he continues to think tech stocks will be up big this year.
XLK HIGH
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This Bloomberg Markets video, published February 05, 2026, features Dan Ives discussing IGV, AMZN, XLK. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Dan Ives  · Tickers: IGV, AMZN, XLK