QTWO downgraded to Sell as growth slows and valuation loses appeal amid SaaS selloff.

QTWO, a software company focused on banking verticals, faces a downgrade to Sell after Q1 earnings showed slowing growth in key metrics. Despite the broader SaaS sector selloff driven by AI-related fears, QTWO's valuation no longer stands out compared to peers with similar growth rates. Investors are shifting focus to profitability, and QTWO's multiples do not impress in the current market environment. The company remains insulated from some AI risks due to its niche, but growth deceleration and valuation concerns weigh on its outlook.