BO BOX Box, Inc. Loading... : Bullish and Bearish Analyst Opinions

Legacy SaaS with data moats are undervalued.

"Agents actually need a file system to be able to do their work... Box is building a platform that helps agents actually leverage the unstructured data." The market previously feared AI would replace SaaS seats. Levie counters that AI agents are actually power-users of software that require a structured data layer to function. If Box becomes the "file system for agents," volume and utility increase significantly, justifying a re-rating from a legacy storage play to an AI infrastructure play. LONG. The stock is breaking out on earnings, and the narrative has shifted from "SaaS victim" to "AI enabler." AI agents might eventually bypass intermediate layers like Box to interact directly with raw storage or proprietary model ecosystems.

Enterprise software stocks have been decimated (down 30-70%) due to fears that Generative AI will allow companies to write their own code and replace SaaS providers. The sell-off is overdone for profitable companies with strong growth. * Intuit (INTU): AI is not a threat to the consumer TurboTax business or SMBs who cannot afford to build internal software. * Salesforce (CRM): Trading at its lowest P/E multiple in history (14x), cheaper than during the 2008 recession. * ServiceNow (NOW): Strong growth (19%) and a massive buyback program ($2B). * Box (BOX): Cheap (16x earnings) with consistent execution. * Atlassian (TEAM): Down 70% from highs but growing earnings at 30%. * Workday (WDAY): Trading at less than 15x earnings despite 18% expected growth. A proprietary screen identified these specific names as having >25% drawdowns but above-market earnings growth and profitability. The market may continue to punish software stocks irrationaly in the short term if AI fears persist.