Jim Cramer: The market has turned against software stocks and this metric explains their downfall

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Why This Matters

Jim Cramer attributes the downfall of software stocks to the price-to-earnings multiple, considering it a key factor in determining stock prices.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%
Time Horizon
Short Term

Article Context

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It's all about the price-to-earnings multiple, Cramer said, describing the figure as the "secret sauce" of a stock's price.

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Original article published by CNBC on January 30, 2026.
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