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 Flywire Corp (NASDAQ:FLYW) 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 digital tablet presenting various payment options alongside an educational lecture on the benefits of diverse capabilities.

Flywire Corp (NASDAQ:FLYW)

Number of Hedge Fund Holders In Q4 2024: 34

Flywire Corp (NASDAQ:FLYW) is a global payments enablement and software company that facilitates complex payment processes.

The stock is down significantly so far in 2025 as it cited an $8 million revenue shortfall, largely due to Canada’s new student visa caps and strained diplomatic relations between India and Canada, which reduced its Canadian revenue by 35%.

The education sector, Flywire’s largest market, relies heavily on international students paying tuition through its platform. Canada’s visa restrictions have limited the number of incoming students. This policy shift directly cut into Flywire’s transaction volume.

The consensus price target of $19.23 implies 93% upside.

FLYW stock is down 51.72% year-to-date.

Overall, FLYW ranks 7th on our list of software stocks that are plunging in 2025. While we acknowledge the potential of FLYW 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 FLYW 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.