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Zacks Market Edge Highlights: Twilio, Salesforce and Adobe
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For Immediate Release
Chicago, IL – January 26, 2026 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2822058/software-stocks-have-plunged-steals-or-traps
Software Stocks Have Plunged: Steals or Traps?
Welcome to Episode #472 of the Zacks Market Edge Podcast.
>
(0:15) - Where Should You Invest Within The Software Industry
(2:40) - Tracey's Top Stock Picks For Your Watchlist Right Now
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to talk about the big cap software stocks. Many of them have plunged to start 2026 on fears that AI will replace some of their products. But will it?
Tracey took a closer look at three big cap software companies. Are earnings on the decline? Are the earnings estimates being cut?
Are the software stocks a deal, or are they a trap?
Definition of a Value Stock Versus a Trap
There are a lot of stocks that plunge so they appear to be cheap. Some may even have a low price-to-earnings (P/E) ratio. A low P/E ratio usually indicates a company is a value.
A stock is a trap if it’s cheap, but the earnings are expected to fall year-over-year. Investors want companies that are growing earnings.
Are the software companies expected to grow their earnings in 2026?
Twilio operates a customer engagement platform for leading brands. It has a market cap of $18.5 billion.
Twilio shares have fallen 11.2% in the last month and are now down 67.8% over the last 5 years. Yet earnings are turning around. Twilio is expected to see earnings growth of 25.3% in 2025 and 11.1% in 2026.
Twilio has a PEG ratio, which measures the P/E over Growth, of just 1.1. A PEG ratio of 1.0 or below usually means a company has both growth and value so Twilio is cheap.
Salesforce has AI agents, data and Customer 360 apps to help companies connect with customers. It has a market cap of $217 billion.
Shares of Salesforce are down 12.5% over the last month on AI fears. But earnings for fiscal 2026 are expected to rise 15.3%. Salesforce has a forward P/E ratio of just 18.8. That is cheaper than the S&P 500, which is around 24x.
Adobe is one of the largest software companies in the world, with over 30,000 employees. It has a market cap of $125 billion.
Adobe shares have really been hit over the last month, falling 16%. Over the last 5 years, they’re down 36.5% and are near 5-year lows.
Earnings are expected to rise 11.9% in fiscal 2026 and 13.3% in fiscal 2027. Adobe is cheap on a P/E basis with a forward P/E of just 12.5. A P/E under 15 usually indicates value.
Is Adobe a steal or a trap in 2026?
What Else Should You Know About the Big Cap Software Stocks in 2026?
Tune into this week’s podcast to find out.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: Twilio, Salesforce and Adobe
For Immediate Release
Chicago, IL – January 26, 2026 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2822058/software-stocks-have-plunged-steals-or-traps
Software Stocks Have Plunged: Steals or Traps?
Welcome to Episode #472 of the Zacks Market Edge Podcast.
>
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey went solo to talk about the big cap software stocks. Many of them have plunged to start 2026 on fears that AI will replace some of their products. But will it?
Tracey took a closer look at three big cap software companies. Are earnings on the decline? Are the earnings estimates being cut?
Are the software stocks a deal, or are they a trap?
Definition of a Value Stock Versus a Trap
There are a lot of stocks that plunge so they appear to be cheap. Some may even have a low price-to-earnings (P/E) ratio. A low P/E ratio usually indicates a company is a value.
A stock is a trap if it’s cheap, but the earnings are expected to fall year-over-year. Investors want companies that are growing earnings.
Are the software companies expected to grow their earnings in 2026?
3 Big Cap Software Stocks: Steals or Traps?
1. Twilio Inc. (TWLO - Free Report)
Twilio operates a customer engagement platform for leading brands. It has a market cap of $18.5 billion.
Twilio shares have fallen 11.2% in the last month and are now down 67.8% over the last 5 years. Yet earnings are turning around. Twilio is expected to see earnings growth of 25.3% in 2025 and 11.1% in 2026.
Twilio has a PEG ratio, which measures the P/E over Growth, of just 1.1. A PEG ratio of 1.0 or below usually means a company has both growth and value so Twilio is cheap.
Is Twilio a steal or a trap in 2026?
2. Salesforce, Inc. (CRM - Free Report)
Salesforce has AI agents, data and Customer 360 apps to help companies connect with customers. It has a market cap of $217 billion.
Shares of Salesforce are down 12.5% over the last month on AI fears. But earnings for fiscal 2026 are expected to rise 15.3%. Salesforce has a forward P/E ratio of just 18.8. That is cheaper than the S&P 500, which is around 24x.
Are the worries about Salesforce overblown?
3. Adobe Inc. (ADBE - Free Report)
Adobe is one of the largest software companies in the world, with over 30,000 employees. It has a market cap of $125 billion.
Adobe shares have really been hit over the last month, falling 16%. Over the last 5 years, they’re down 36.5% and are near 5-year lows.
Earnings are expected to rise 11.9% in fiscal 2026 and 13.3% in fiscal 2027. Adobe is cheap on a P/E basis with a forward P/E of just 12.5. A P/E under 15 usually indicates value.
Is Adobe a steal or a trap in 2026?
What Else Should You Know About the Big Cap Software Stocks in 2026?
Tune into this week’s podcast to find out.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.