Just been looking at the software sector and there's something interesting happening here. A lot of people are panicking about AI disruption, but the market's reaction feels way overblown. Two names that caught my attention are trading at prices that don't match the actual business fundamentals.

Let me start with Wix. The stock got absolutely hammered - down around 70% over the past year. Everyone's worried that AI will kill website builders, which honestly doesn't make much sense. Wix has been enabling people to build sites without coding for over a decade. That's literally their whole thing. Yet the market is treating it like it's obsolete.

Here's what's actually happening though. Their revenue growth just accelerated to 14% last quarter, up from 13% a year ago. Not massive, but the point is clear - AI tools aren't destroying their growth engine. They're actually using AI to improve the platform. Plus they acquired Base44, a mobile app builder, which slots perfectly into their no-code ecosystem. Base44 was basically zero revenue when acquired but is tracking toward $50 million in annual recurring revenue by end of 2025. That's the kind of growth trajectory you want to see.

The numbers are wild. Free cash flow hit $570 million over 12 months. Market cap is under $4 billion. Wall Street's average price target is $151. Current price? $72. That's a massive gap.

Then there's Adobe. Down 45% in a year, and the narrative is the same - AI will replace all their creative tools. People think some startup can just ask ChatGPT to build the next Photoshop or Premiere. Look, I get it - AI is powerful. But that's not how this works. Marketing teams aren't going to rebuild their entire workflow around some AI-generated tool when they've trusted Adobe for years. The switching costs are real.

Adobe just posted record revenue of $6.2 billion last quarter. They're buying back stock at discount prices. Revenue's been growing consistently for a decade and there's no sign of that stopping. The stock trades at 12.5x trailing operating earnings - basically one of the lowest valuations they've ever had. Wall Street's average target is $429 versus the current $258 price.

Here's the reality about this bear market in software: yes, AI makes it easier to build competing products. But that doesn't mean customers will abandon systems they've relied on for years. There's real switching risk when you're talking about moving your entire business operations to something new. Small business owners using Wix, creative teams using Adobe - they're not going to jump ship because an AI bot can theoretically build an alternative.

AI disruption is a legitimate risk in the long term, but we're not talking about overnight collapse here. The headlines have scared investors out of quality businesses trading at reasonable prices. That's exactly when you want to be looking at the dip. Both of these stocks look interesting from a risk-reward perspective right now.