It's a massacre in software: IGV down another 4.9%, who are the winners and losers?

The IGV ETF has become a symbol of the recent market selloff, dropping 4.9% today and 32% since October. The prevailing sentiment suggests that AI agents will dominate the internet, presenting challenges for companies relying on interface fees, such as Thomson Reuters. Significant damage has been seen in stocks like Microsoft, which fell 18% over the last six sessions. In contrast, companies that generate proprietary data, like S&P Global, MSCI, and Tradeweb Markets, are seen as winners. S&P Global's ratings are entrenched in financial contracts and cannot easily be replaced, while MSCI's indices are crucial benchmarks for institutional mandates. Tradeweb, with its electronic trading platform, is expected to benefit from the transition to AI-driven trading. These companies are trading below their historical average multiples, increasing their appeal for potential investors.