Avery Sheffield

"A lot of software companies are still trading at infinite earnings... 40, 50, 60, 70, 100 times on forward earnings. If there's any chance that the terminal value is at risk, there's dramatic downside." She specifically notes headlines about "Anthropic and a new cyber security solution" negatively impacting stocks. AI is moving from a buzzword to a deflationary force for specific software verticals. If AI agents (like Anthropic's) can replace complex cybersecurity or SaaS tools, the "terminal value" of these high-multiple companies approaches zero. The market is currently pricing them for perfection, ignoring the existential obsolescence risk. SHORT high-valuation, unprofitable software and cybersecurity firms vulnerable to AI displacement. AI disruption takes longer to materialize; interest rate cuts reignite risk appetite for long-duration assets.