Software Sector Update (The Cestrian Circle Newsletter)

Last updated on Apr 28, 2026

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Checking In On The Most Hated Sector Of All

by Alex King, CEO, Cestrian Capital Research, Inc

If you missed it, take a look at our recent note Here Comes Software.

With the indices weak today and even the mighty semiconductor sector selling off some, I wanted to check in on enterprise software to see how these stocks are holding up against the “going to zero because AI” narrative. Because a weak Nasdaq would surely finish them off. Right?

Well, let’s see. Below we run through Zscaler (ZS), Cloudflare (NET), The Trade Desk (TTD), Gitlab (GTLB), ServiceNow (NOW) and Salesforce (CRM).

IGV - Software Sector ETF

We’ll start with the $IGV, a broad software ETF. You can open a full page version, here.

This is holding nicely over its recent lows, volume is high as it traverses the Accumulation Zone, and price is also holding over the 21-day exponential moving average. On a day when the Nasdaq closed down 1%, IGV closed down half that. This continues to look bullish to me.

Now let’s get into the single-name stocks. Post-paywall content is available to all paying Cestrian Circle and Cestrian Inner Circle members. If you’d like to join either of these services you can do so from the paywall.