Ed, aligned with your google vs Open AI comparison.
What worries me more with traditional SaaS players isn’t execution ability with AI-it’s how they’re framing AI internally.
AI projects are positioned primarily as a cost-cutting or job-safety tactic, it creates fear, politics, and project-hogging. That’s where innovation is stalling with the giants. They are neither showing strong leadership nor a concrete strategy!
I sadly heard numerous anecdotes of this at Cisco and other big tech companies. Thoughts?
I agree, Ed. It’s human nature to over-hype new technologies in the short term, yet under-hype their potential in the long run. Great opportunity to load on those names and hold them for the next 2 years.
Ed, I have listened to every word you have spoken over the last few years, but I implore you to think a little deeper about the software sell-off. Just because these companies are cheaper than they once were does not make them cheap. NOW is trading at ~44x forward GAAP earnings. Is that cheap at a 20% revenue growth rate? Maybe. But I think the software disruption risk is a good reason to be more disciplined about valuation.
I’m obviously an idiot because my first reaction, before I saw the markets, was that SaaS would rise. Doh. I thought AI would be amazing for existing SaaS companies.
Ed, aligned with your google vs Open AI comparison.
What worries me more with traditional SaaS players isn’t execution ability with AI-it’s how they’re framing AI internally.
AI projects are positioned primarily as a cost-cutting or job-safety tactic, it creates fear, politics, and project-hogging. That’s where innovation is stalling with the giants. They are neither showing strong leadership nor a concrete strategy!
I sadly heard numerous anecdotes of this at Cisco and other big tech companies. Thoughts?
I agree, Ed. It’s human nature to over-hype new technologies in the short term, yet under-hype their potential in the long run. Great opportunity to load on those names and hold them for the next 2 years.
Ed, I have listened to every word you have spoken over the last few years, but I implore you to think a little deeper about the software sell-off. Just because these companies are cheaper than they once were does not make them cheap. NOW is trading at ~44x forward GAAP earnings. Is that cheap at a 20% revenue growth rate? Maybe. But I think the software disruption risk is a good reason to be more disciplined about valuation.
I’m obviously an idiot because my first reaction, before I saw the markets, was that SaaS would rise. Doh. I thought AI would be amazing for existing SaaS companies.
Agree.
Re:Adobe - I think Figma is a better money-for-jam buy at the moment. Winding down from an overbought IPO and the selloff with incredible growth.
Unsubscribe from Microsoft services but invest in stock. Hmmmmm. What to do?