Hedge Funds Double Down on 'Short Software' Bet, Raking in $24 Billion Profit

• Hedge funds are significantly increasing short positions in software stocks, contributing to a sharp sector selloff this year.
• Short sellers have generated $24 billion in profits from software stocks, while the sector's market capitalization has shrunk by $1 trillion.
• Investors are primarily targeting firms offering basic automation services, seen as vulnerable to disruption from new AI tools.
• The iShares Expanded Tech-Software ETF is down 8% this week, extending its year-to-date losses to over 21% and 30% from its September peak.
• Companies like TeraWulf, Asana, Dropbox, Cipher Mining, Intuit, DocuSign, Microsoft, Oracle, Salesforce, Adobe, and ServiceNow are facing significant short interest and stock declines.