SaaSmageddon Is Overblown(?)

SaaSmageddon has been a major theme in markets these past few weeks. I also read that a fund manager expects few SaaS stocks to [make it](https://www.bloomberg.com/news/articles/2026-02-16/fund-beating-99-of-peers-sees-few-software-firms-surviving-ai?srnd=homepage-americas&sref=iFWW0xUZ), following the path of many newspapers, because AI "coding tools have improved so much that they can already replicate and modify much existing software." Personally, I think this is a very bad take because it ignores the fact that businesses probably don't want to perform the services SaaS stocks provide in the first place, no matter how good AI is. Why would a business want to focus on building and maintaining a service that is not apart of their core business? Trying to replace a vendor with an in-house offering will probably be a distraction in most cases, in my opinion (also, I would bet my entire net worth that this particular fund manager would never entertain the thought of brining the services that HubSpot, ServiceNow, Atlassian, or whatever vendors he uses in-house.) With that being said, I do think AI has raised the bar in terms of what people expect from SaaS solutions, and selling will definitely become harder. But I think the companies that are successful in this new environment will ultimately leave SaaS in a better place than where it is today.