With pressure on the Tech sector intensifying with President Trump unleashing tariffs global, increasing concerns around the macro economic growth outlook in the process, we activate our Technologist to look at Large Cap US Software valuations and earnings expectations in order to identify potential areas of continued pressure, as well as potential safer corners of the sector. US Software valuations have compressed to 22x EV/EBIT, near their 10 year averages. We still see ~15% valuation downside potential (from the end of Q1) should the sector fall to the lower end of its more recent range. While historically, downside has mainly come from valuation multiples as cost cutting has preserved margins, we believe earnings downgrades are more likely in this downturn as Software companies enter the downturn with much higher margins following the year of efficiency. Overall, we would prefer enterprise exposure (Oracle, Microsoft and SAP), committed AI backlog exposure (Microsoft and Oracle) and selected attractive valuations (Alphabet and Salesforce). We would avoid stock where estimates likely need to be cut the most like Meta where the market still expects 15% revenue growth over the next two years despite 98% of revenues still coming from advertising, with ramping depreciation costs. We would avoid stocks likely to absorb a margin hit due to tariffs, namely Amazon. And we would avoid stocks still trading on high multiples relative to the sector, like ServiceNOW.