AI fears have crushed software stocks while the rest of tech is near highs.
Valuations looks attractive though, with many names at multi-year lows despite wide moats and strong margins. I started buying last week (ADBE and WDAY) and think pessimism may be overdone.
Curious if others are buying here or waiting for a clearer catalyst.
Anyone else catching the falling knife in SaaS lately?
byu/Emergency_Pound instocks
Posted by Emergency_Pound
12 Comments
They are value traps. Anthropic’s newly released co-work is a direct threat to AgentForce, not saying don’t ever invest in software again but the multiples are going to get repriced as a mediocre saas business and not a winner. The AI platform will cut directly into their revenues because a lot of small businesses can either rely on Anthropic’s version or just develop their own at a cheap cost given AI agent development through open source is rapidly increasing.
No reason to when the majority will be upended by Claude cowork. I would only be interested in the ones that can’t be disrupte easily by agentic ai automation.
Ban op
WDAY will lose smaller customers who can run stuff from sheets and excel using AI.
ADBE is cooked unless they have a game plan to secure market share.
No. Most SAAS products are indeed in trouble
Looks like close to bottom in SaaS based off these comments
Its funny… they were only in trouble since jan 1st. Most of them fell 10-20% in the first 2 weeks of the year based on false hope ai is going to magically take over.
Please. Markets always get ahead of themselves. Ai = dot.com. Adobe/crm etc will adapt and continue to make bank as long as humans still run the show.
Ask Adobe customers (big corporations to small time graphics and video editors) first. Adobe is in decline, we haven’t felt it yet. Subscription is not an attractive sell as investors think it is.
Tried to find an ETF for these. Anyone got one?
Added Wolters Kluwer to my watch list 3 months ago. I think a bottom is finally beginning to form. I’ll probably get in either before or after earnings.
Some of the companies are in trouble some are not – they are getting pulled down together but it’s case by case and their rate of integration (how good are the workflows) and innovation. MongoDB was getting fucking dragged and labeled dead and now the stocks back.
Can some one list of wide moat Large/Med cap SaaS companies by their vertical? ADBE, WDAY, CRM, GTLB, DDOG, DT, MSFT, SNOW, These are the names i am thinking.