Quick Thoughts on this Software Sell-Off

We need to categorize software companies: The Weaker Companies (Tools): They sell shovels (Adobe, Salesforce). But now, robots (AI) are showing up with automated excavators for free. The price of shovels crashes. • The Safe Companies (Landlords): They own the land where the gold is (S&P, Moody's). It doesn't matter if you use a shovel or a robot excavator; you still have to pay the landlord to dig. S&P Global is getting cheap because of AI fears though they are literally selling data to feed Anthropic and Gemini. Even if the number of seat licenses reduce in the coming years (headwind to CapIQ in Market Intelligence). As they highlighted in the latest earnings call: 95% of their revenue is tied to proprietary data. AI process and use data but is not in the business of aggregating massive amounts of data to sell it which is what S&P Global does.