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Feb 13
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$72.38
$77.00
+6.4%
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SHORT
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Bailey Lipschultz
Reporter, Bloomberg
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These names are on the SHORT side of Goldman Sachs' "AI Proof" basket. The inference is that these business models (generic SaaS, CRM, language learning) are vulnerable to displacement by AI agents or automated coding/language models. They lack the "physical" or "regulatory" moats of the long basket. SHORT as a hedge against AI disruption eroding seat-based pricing power. AI integration actually boosts their margins rather than replacing them. |
Bloomberg Markets
Stocks Steady as Treasury Yields Slip After C...
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Feb 12
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$73.63
$77.00
+4.6%
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N/A
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Finnhub News
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Finnhub - MNDY
What Does the Market Think About Monday.Com L...
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Feb 11
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$73.09
$77.00
+5.3%
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AVOID
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Josh Brown
CEO, Ritholtz Wealth Management
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"We are separating the market into two camps... Information merchants... and legacy platforms... the value of selling information to people is declining at a precipitous rate." For 15 years, the market fetishized "asset-light" software models. AI has flipped this. If AI reduces corporate headcount, the "per-seat" pricing model (SaaS) of companies like Salesforce and Workday collapses because there are fewer humans to sell subscriptions to. Furthermore, AI can replicate "information merchant" value propositions cheaply. Avoid "Vertical Market Software" and companies selling pure IP/Information; they are the "losers" in the AI shift. AI adoption might be slower than expected, or these companies successfully pivot to consumption-based pricing. |
The Compound News
Is It Time to Buy Software Stocks?
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Feb 09
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$77.63
$77.00
-0.8%
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SHORT
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Deirdre Bosa
Anchor/Reporter, CNBC Tech Check
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The rise of AI agents is "fuel for the software bears." Monday.com dropped 22% on a disappointing outlook, and Workday's stock has lost nearly half its value over the past year. Historically, companies paid SaaS vendors because building software internally was too hard. Now, AI agents allow non-tech companies (like AT&T or Mercedes) to build their own custom software cheaply and quickly. This shrinks the competitive advantage (moat) of traditional software-as-a-service vendors. Databricks data shows 80% of databases are built by agents; the IGV software ETF is lagging significantly. Traditional vendors may successfully integrate AI to retain value, or the "build vs. buy" trend may revert if internal tools prove difficult to maintain. |
CNBC
Databricks finishes $5 billion funding round ...
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