2026-01-14 03:34:34

The valuation story of software companies is reversing. Once highly regarded, with transaction multiples reaching up to 20x, these quality companies have now fallen to 5x — which is indeed hard to look at for many.

The irony is that AI was originally hyped as a game-changer, promising to give these tech companies wings. But what happened? Instead, it backfired unexpectedly. Companies that pinned their hopes on the AI wave are now under tremendous stock price pressure, with valuations being ruthlessly squeezed.

What's even more interesting is that during this tech stock turbulence, the QQQ index remains close to its all-time highs. This is the most authentic snapshot of the current market — some companies are being stripped back to their original form, while the index remains firmly high. The fate of tech stocks is vastly different despite being in the same sector.

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CryptoCross-TalkClub

· 01-14 04:02

20 times down to 5 times, this is called "AI giving you wings," but it ended up directly throwing you into a pit. QQQ is still holding strong at high levels, while individual stocks below are crashing wildly. This market really is like ranking the leeks—some leeks are tough and kept for further harvesting, while others are already discarded. The dream of 20 times profit was really exciting. Once awakened, it's straight to hell.

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