Companies like Monday.Com and Atlassian(TEAM) and Salesforce are all dropping this week due to Anthropics new Cowork and fears that people will be replaced by AI so there will be less seats to licence. Is this a market overreaction and could potentially be a good play to buy the dip?
SAAS companies are dropping due to AI, is this an overreaction?
byu/Remote_Belt_320 ininvesting
Posted by Remote_Belt_320
5 Comments
Aladeen
Yeah pretty much – especially when you consider most of that type of business aren’t spending capital on GPUs etc, at worst they’re just renting a few more boxes from Google or AWS.
The most exposure they’ll have to AI is gonna be a few random acquisitions. If you then flip it and think that every CTO has told their teams to go all in on AI and the easier way to do that it through other enterprise software companies then their prospect remain pretty decent.
That said – Salesforce hasn’t done much useful with AI yet that I can see, Atlassian seems to be doing better purely because of the kind of data it holds as an happy accident from the products it has.
Random blip, not the first, won’t be the last. The “AI Bubble“ ain’t popped yet.
Probably. Seats may dip in the short term but the expectation of what software can do will go up and people will need to fill those seats back in.
People talk about the threat that new AI companies will emerge and take their place, but the threat is weak or not quite there yet. The incumbents have all the customers and profits to reinvest and see the threat coming and none of them are waving it off like Blockbuster or Kodak. They are actively trying to evolve which will make it difficult for startups to gain market share.
Probably. Take Salesforce. They have a huge customer base with their CRM and other systems. Anthropics can’t take over those systems with a finger snap. It is more likely Sales force embedds ai in their systems to get more immediate productivity gains.
Any way one shakes it there will need to have data in organized fashion for a human or ai to do something with it.
The value of SaaS will definitely go down due to AI, not even counting the lack of seats.
If development is cheaper due to Ai, opting for a SaaS becomes more expensive in comparison. I see lots of small businesses using AI to substitute the bloated SaaS they used to use