LZ LZ Lantheus Holdings, Inc. Loading... : Bullish and Bearish Analyst Opinions

Bearish view on LayerZero (LZ) due to severe security vulnerabilities and poor opsec detailed in the security debate, which justify a bearish view as protocol risk outweighs value.

The author predicts a 90%+ TVL loss for the kelp protocol, dismissing its future viability and suggesting minimal impact on LayerZero, while criticizing the narrative as virtue signaling.

LZ is unattractive — near-zero GAAP earnings, minimal growth, and a 20x valuation even on an adjusted basis represents excessive risk given rapid technological disruption that could render its legal-services model obsolete before the multiple is earned back.

Gerstner notes Salesforce (CRM) has compressed from 30x to 15x Free Cash Flow despite hitting revenue numbers. Sacks argues AI agents (like Claude Co-work) will work across applications, turning current SaaS tools into a commoditized "legacy infrastructure" layer. The market is discounting the terminal value of these companies. If AI agents can execute tasks across databases without a human needing a UI "seat," the per-seat pricing model collapses. The profit pool moves from the application layer to the agentic layer. Avoid or Short. The multiple compression is not a temporary dip but a structural repricing of future cash flow durability. These incumbents successfully pivot to become the "agentic workspace" themselves (e.g., Salesforce successfully monopolizing the agent layer).