For Anyone With A SaaS Stock Portfolio, The Last Few Days Would Appear To Be A Blip On An Otherwise Steady Climb To Continual Record Highs.
Except, When Analysts Start Calling It The SaaSpocalypse, You Have To Take Notice. Senitment Drives Valuations And Appetite. And If The SaaSpocalypse Is A New Theme, Then As Tech Leaders, We Better Understand It Super Fast, Because All The Valuations For All SaaS Companies Is About To Get Really Messy!
Here’s Whats Going On….
Here’s Whats Going On….
For Decades, SaaS Was The Safest Bet In Tech. Recurring Revenue. Predictable Renewals. PE‑friendly Cash Flows. A Nice Fortress, With High Walls, And Deep Moats.
AI ….. Just Walked Over The Moat And Kicked The Door In.
When An Intelligent Agent Can Do The Work That Software Charges For, The Whole Model Wobbles. Churn Looks Extremely Vulnerable. Pricing Power Evaporates. Moats Drain.
The Assumptions That Propped Up SaaS Valuations For Years Suddenly Look… Optimistic.
And The Shockwaves Aren’t Limited To Public Markets. PE Portfolios Built On Software‑backed Credit Are Taking Real Hits As Investors Reprice Risk Across The Entire Ecosystem.
So, Here Is The Uncomfortable Truth
AI Isn’t Competing With SaaS … It’s Compressing The Value Propositions The SaaS Model Was Built On.
It’s Too Early To Call If This A Full Re‑rating Of The Industry? Would Love Thoughts Here From A Few CFO’s Who Know Better Than Me. But One Thing Is Undeniable: The “safe” Bets In Tech Aren’t Safe Anymore, And What Got You Here, Won’t Get You There!