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Just For You Software Stocks Are Down—Expert Says These 3 Names Still Look StrongBy Bridget Bennett. First Published: 3/17/2026. 
Key Points - Software stocks are being repriced as investors distinguish between companies that benefit from AI and those whose products may be easier to replace.
- Kuran Francis of FinTek highlighted CrowdStrike, Zscaler and Datadog as software names he sees as better positioned in this environment.
- Francis flagged Adobe as a higher-risk case, arguing its seat-based model could face more AI-driven pressure than the market expects.
- Special Report: Elon Musk: This Could Turn $100 into $100,000
Software stocks have been under pressure, but not every company should be sold off with the group. In a recent conversation with Kuran Francis of FinTek, he highlighted a key shift reshaping the software landscape: investors are no longer treating AI as an automatic positive for every tech company. That distinction matters. Some software businesses may become more valuable as AI adoption grows, while others could face real pressure if their products become easier to replace. Francis framed the current moment as one where investors need to separate the software winners from the software losers. As Francis explained, “the difference between the losers and the winners is only going to get bigger over time.” In the conversation, three companies stood out as software names that may still have strong upside despite the recent downturn, while one major name landed in the category to avoid. Why Software Stocks Are Selling Off When asked what triggered the broader software weakness, Francis pointed to growing concern that new AI tools are becoming capable enough to replace parts of existing software workflows. The issue isn’t just that AI helps companies work faster. Some tools are moving closer to doing the work directly, which threatens business models built around seat-based pricing. When a company charges based on how many human users need access, AI can weaken that model if one agent can perform tasks that previously required multiple employees. Francis said the market is beginning to understand that “AI isn’t just going to sort of lift all boats in technology.” That shift has created a more selective environment for software investors. The takeaway: companies that directly benefit from AI demand, or that charge based on usage rather than seats, may be in a much stronger position than the market currently credits them for. CrowdStrike Still Looks Built for This Environment The first name Francis highlighted was CrowdStrike Holdings (NASDAQ: CRWD), with the case centered on cybersecurity becoming even more important in an AI-heavy world. If AI makes it easier for bad actors to launch attacks, demand for advanced security tools should rise — which is why Francis believes CrowdStrike may be getting unfairly lumped in with weaker software names. He noted hackers are already using generative AI to increase the speed and scale of cyberattacks, and pointed to CrowdStrike’s research showing a rise in AI-enabled threats and zero-day vulnerabilities. That reinforces the idea that cybersecurity demand is likely to remain strong. Importantly, CrowdStrike didn’t just bolt AI onto an older platform. Its system was built around identifying suspicious patterns with machine learning long before AI became a market buzzword, giving the company a stronger moat than many traditional software providers. Zscaler Offers Another Cybersecurity Angle The second bullish software name was Zscaler (NASDAQ: ZS), which Francis described as a different kind of cybersecurity play. Where CrowdStrike focuses on identifying and stopping threats, Zscaler concentrates on controlling access and securing how users and systems connect. That role becomes more important as work moves to the cloud and as AI agents begin interacting with systems directly. Francis emphasized Zscaler’s role in zero-trust security, where every interaction must be authenticated rather than trusted by default. That framework could be increasingly valuable as businesses try to capture AI’s benefits without adding new operational risks. He also argued that Zscaler hasn’t received the same AI halo that lifted some peers, which may explain why the stock has not recovered as sharply despite its technology being tightly linked to AI security. Datadog May Be the Overlooked Name The third company was Datadog (NASDAQ: DDOG), perhaps the least talked-about of the group but one Francis finds especially interesting. Datadog helps companies organize, monitor and make use of their data across applications, infrastructure and security systems. That may not sound flashy, but in an AI economy good data is foundational. Francis pointed out that better data leads to better AI outcomes. In that sense, Datadog helps solve one of enterprise software’s hardest and most important problems: making data usable. He also highlighted a business-model advantage. Unlike companies that rely heavily on seat-based pricing, Datadog charges based on usage — so whether the customer is a human employee or an AI agent, Datadog still gets paid. Francis called the stock “kind of a hidden gem,” arguing the market may be overlooking how important Datadog’s role could become as more companies embed AI into operations. The Software Stock to Avoid The one name Francis advised caution on was Adobe (NASDAQ: ADBE). The concern isn’t that Adobe lacks strong products — it’s that parts of its business model may be exposed to AI disruption. Adobe has long benefited from seat-based pricing, especially in creative software, and AI tools that reduce the need for as many individual users could put that structure under pressure. Francis suggested Adobe may be moving toward a turnaround situation. “If they continue as if it’s business as usual, I think the stock is going to continue dropping from here,” he said. That doesn’t mean Adobe has no path forward, but it does mean investors may be betting on a successful strategic pivot rather than a business already fully aligned with where the market is headed. | 
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