1054 ET - Software companies should consider M&A opportunities in addition to stock buybacks given current low valuations, according to D.A. Davidson in a note, especially if leadership has conviction that software will remain relevant in the AI age. Buybacks are "by all means better than sitting on cash, but almost all software companies are cheap now," the analysts say. "If you can get strategic benefit in addition to accretion, M&A is a better strategy," they add. The analysts propose a handful of potentially accretive deals in software such as Salesforce acquiring Zeta Global, IBM buying JFrog, Workday looking at BlackLine or Vertex and ServiceNow acquiring Dynatrace. Adobe could even resurrect its bid for Figma for three-quarters the original price, the analysts say. Box, Five9, SPS Commerce, and Gitlab could also be acquisition targets, according to D.A. Davidson. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

March 18, 2026 10:54 ET (14:54 GMT)

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