Zoho founder Sridhar Vembu on why he sees huge opportunity for Indian IT companies, as ‘Software stocks are coming down hard’
Zoho founder Sridhar Vembu has said that falling software stocks are creating a major opportunity for Indian IT services companies, as he questioned high valuations and business models of large global software firms. In a post shared on social media platform X, the Zoho founder said many software companies were “massively over-valued” and are now seeing sharp corrections. Vembu’s post came after Microsoft witnessed its worst stock market days recently after it lost $400 billion in just a few hours as the company’s stock plunged.
In the post, Sridhar Vembu said software stocks are “coming down hard” because many mature software companies were trading at price-to-earnings ratios of 30 to 40, which he believes are unsustainable.
