Between 2024 and June 2025, Constellation Software (CNSWF) stock held the $3,000 to nearly $4,000 range. That broke down consistently since last summer.
In the third quarter report (posted in November 2025), Constellation reported 16.1% Y/Y in revenue growth. However, organic growth was 5%, which fell to 3% after adjusting for foreign exchange rates. Even though cash flow grew by 46%, indicating a healthy business, stock markets disagreed.
CNSWF lost another ~ 7% on Tuesday. The company is a value stock. That suggests that it would reward patient, long-term investors, to wait for a rebound.
Synopsys (SNPS) slipped from the $500 resistance level. Valuations are still too high at a forward price-to-earnings ratio of 32 times.
Intuit (INTU), which gives consumers software to process tax filing, fell in sympathy to the ~20% drop in PayPal (PYPL) stock. It is still overvalued at a P/E (forward) of 21 times.
Among the Magnificent 7, Microsoft (MSFT) selling pressure accelerated on strong volume. Up by 69% in the last five years, long-term investors need not fear the correction in MSFT stock.
Automatic Data Processing (ADP) posted a strong quarter, earning $2.62 a share (non-GAAP). Just like the companies above, valuations are slightly high. ADP stock trades at a 23.7 times P/E, which is around 6% above the sector median.
