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 Rezolve AI Ltd (NASDAQ:RZLV) 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).Why Is Rezolve AI Ltd (RZLV) Plunging In 2025?

An executive in a suit presenting a digital commerce platform to a group of financial advisors.

Rezolve AI Ltd (NASDAQ:RZLV)

Number of Hedge Fund Holders In Q4 2024: 5

Rezolve AI Ltd (NASDAQ:RZLV) makes AI for digital commerce.

The stock is down significantly so far in 2025 as the company’s financial struggles weigh heavily on the stock.

Rezolve AI has high debt levels at $45.4 million and negative book value per share.

The company did make moves like the $1 billion Bitcoin treasury announcement in February 2025 but many see this as risky and as something that distracts from core operations. It is also acquiring GroupBy for $55 million. It doesn’t have the cash for such a big acquisition, so it’ll likely be dilutive or add more debt.

The consensus price target of $6.4 implies 287.88% upside.

RZLV stock is down 56.68% year-to-date.

Overall, RZLV ranks 3rd on our list of software stocks that are plunging in 2025. While we acknowledge the potential of RZLV 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 RZLV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

Story Continues

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.

View Comments