Software Stock Update: February 2006

Software Stocks underperformed the rest of the market in February with the Software Stock Index down 2.4% vs. the NASDAQ's 1.1% decline.  The average stock was up 1.2% thanks to a few crazy microcaps, but overall there were declines in small, mid, and large cap stocks.  The best performing sector was Collaboration (+11.3%) while the worst performing sector was Clinical Apps (-9.6%).

There were, yet again, no software IPOs this month but two more software acquisitions were closed with Intellisync going to Nokia, Micromuse going to IBM.  We're just 2 months into 2006 and already 7 firms or 2.7% of the total have been acquired.

For a detailed breakdown of all the stock statistics including a record of all of the M&A in the space, click here to download an Excel spreadsheet with the data and click here to get Microsoft's automatic stock quote downloading plug-in for Excel if you don't already have it.