We recently published a list of Why These 15 Software Stocks Are Plunging In 2025. In this article, we are going to take a look at where Agilysys Inc (NASDAQ:AGYS) stands against other software stocks that are plunging in 2025.
The software sector has been anything but calm lately. These stocks were the darlings of Wall Street for the past few years but are now taking a beating due to tariff-related uncertainty and worries about AI’s lack of profitability.
News headlines have been almost entirely negative in the past two months due to weak macro data and big companies’ disappointing earnings results. This has caused a pivot toward profitability over growth.
Volatility often hides opportunity, and many of these software stocks are now oversold and can rebound when sentiment shifts. As such, it’s worth looking into the stocks that have plunged the most.
Methodology
For this article, I screened the worst-performing software stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An expert IT engineer demonstrating a new software solution to hotel managers in a boardroom.
Agilysys Inc (NASDAQ:AGYS)
Number of Hedge Fund Holders In Q4 2024: 20
Agilysys Inc (NASDAQ:AGYS) sells software solutions and services tailored for the hospitality industry.
The stock is down significantly so far in 2025 due to disappointing quarterly results reported in January 2025.
Agilysys reported earnings per share of $0.38, beating estimates of $0.34. However, revenue came in at $69.6 million against expectations of $73.1 million in Q3 FY2025. Investors reacted negatively to this revenue miss, and the stock plummeted.
The revenue shortfall stemmed from ongoing pressures in point-of-sale (POS) system sales and delays in project implementations. These issues disrupted the company’s growth momentum, which had been fueled by strong subscription revenue and acquisitions like Book4Time in prior quarters. Analysts noted that while subscription revenue grew, the weaker POS segment and implementation hiccups raised concerns about near-term growth consistency.
Market sentiment also shifted due to broader economic factors affecting the hospitality sector, which is a key market for Agilysys. Rising operational costs and cautious spending by hospitality businesses may have slowed adoption of new software solutions.
The consensus price target of $127.5 implies 72.93% upside.
AGYS stock is down 44.02% year-to-date.
Overall, AGYS ranks 9th on our list of software stocks that are plunging in 2025. While we acknowledge the potential of AGYS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AGYS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
