QQQ Down Just Over 1% While Software ETF IGV Slides 23% YTD
QQQ has slipped just over 1% year-to-date while the iShares Tech-Software ETF dropped 23% YTD, including a 16% decline last month. Heavyweights Salesforce, CrowdStrike, Unity and ServiceNow each beat earnings but fell 26%, 21%, 59% and 29% YTD, reflecting AI integration pressures.
1. QQQ Year-to-Date Performance
QQQ has edged down just over 1% year-to-date, holding up more effectively than pure-play software benchmarks as semiconductors and platform stocks offset sector-specific headwinds.
2. Software Sector Decline
The iShares Tech-Software ETF shed 23% YTD, including a 16% drop over the past month, with broad-based sell-offs across gaming, cybersecurity, legal services and trucking holdings.
3. Strong Earnings, Weak Shares
Salesforce beat EPS estimates by 24.9% and grew Agentforce ARR by $800 million (169% YOY), CrowdStrike added $265 million in net new ARR (73% YOY), Unity reported adjusted EPS of $0.24 versus –$0.22 estimate, and ServiceNow delivered robust results, yet shares fell 26%, 21%, 59% and 29% YTD respectively.
4. AI Integration Pressure
Enterprises are embedding AI agents into core systems via open integrations, automating tasks once billed by software vendors. ServiceNow CEO argued this deployment will fuel the largest multitrillion-dollar return cycle in infrastructure investment rather than erode software company revenues.