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 PSQ Holdings Inc (NYSE:PSQH) 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).
A businessman at a smart POS terminal, demonstrating contactless payment methods.
PSQ Holdings Inc (NYSE:PSQH)
Number of Hedge Fund Holders In Q4 2024: 9
PSQ Holdings Inc (NYSE:PSQH) operates an online marketplace and payments ecosystem.
The stock is down significantly so far in 2025 despite impressive revenue growth (e.g., a 222% increase to $6.5 million in Q3 2024 compared to Q3 2023).
PSQ Holdings remains unprofitable, and investors are losing confidence because the company has delayed its goal of achieving positive cash flow from 2024 to late 2025.
It surged over 270% in a single day in December 2024 after announcing Donald Trump Jr.’s appointment to the board, but it has since struggled to maintain those gains. Moreover, PSQ Holdings operates in a niche market targeting a “parallel economy” for value-driven consumers, which could limit its growth compared to broader e-commerce platforms.
The consensus price target of $6 implies 125.14% upside.
PSQH stock is down 41.41% year-to-date.
Overall, PSQH ranks 11th on our list of software stocks that are plunging in 2025. While we acknowledge the potential of PSQH 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 PSQH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
