Goldman Sachs strategist warns of downward risk to profit margins for European software companies.

Goldman Sachs Group strategists pointed out that despite the sharp decline in European software stocks, profit expectations have not been revised downward. This means that there is no short-term risk to corporate profits, but concerns remain about long-term profit margins. The strategist team, led by Sharon Bell, stated that analysts have not lowered profit expectations for the relevant companies. While this trend may signal positivity, it also highlights the uncertainty about future profit margins. It is worth noting that the profit margins of European software and information technology companies are twice the average level in the European market, making this industry more vulnerable to market competition. Strategists believe that the current valuation level of European software stocks may already reflect the related risks.