Did AI Eat Software?

Happy humpday - 

The markets are a mess! We’re seeing bifurcation across the board. 

Select stocks show signs of relative strength, while software names fail to catch a bid.

Meanwhile, Moltbook and OpenClaw have taken over the social feeds. It’s hard to tell whether this enthusiasm is late-cycle froth, or an early glimpse of what comes next.

Moltbook is a social network designed for AI agents rather than humans. 

The platform functions like a Reddit-style forum where autonomous bots create posts, reply to threads, and vote on content, enabling machine-to-machine conversation in public view. 

Developers can deploy agents with specific goals or personalities and watch how they interact without direct human input. 

OpenClaw is an open-source, autonomous AI assistant that runs locally on your device, acting like a proactive digital helper rather than a simple chatbot. 

It integrates with messaging apps (WhatsApp, Telegram, Slack) and other services, enabling AI agents to execute real-world tasks such as managing email, calendar, files, scripts, and workflows on your behalf. 

These tools are undeniably cool, and they’re capturing the internet’s imagination at the exact moment software stocks are in free fall.

Since its all-time high close on 9/22/2025, the Software ETF $IGV is down -29%.

What we’re seeing is a clear disconnect between narrative and price.

The internet is buzzing about AI agents and “vibe coding,” yet the software sector is already in bear-market territory. 

Excitement is rising while capital is leaving. 

I’m wary of allocating fresh risk into a sector already in free fall.

My job isn’t to predict the bottom or catch a falling knife - it’s to respect price.

For now, caution beats bravery.

I’ve reduced exposure, protected gains, and will let the market make sense of the madness.

PS - This Thursday, Steve Strazza will host a follow-up call to answer the most common questions that came out of last week’s Beat Report live session. Steve will provide clarity as to the process of turning earnings data into profitable trade opportunities. 

Join us February 5th at 2PM ET!

Disclosure: This is not financial advice.