SaaSmageddon: Are software stocks doomed?

u/41Investments · Reddit — r/ValueInvesting · January 25, 2026 at 12:07 · ⬆ 2 pts · 💬 9 comments  | View on Reddit ↗
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Author argues software/SaaS selloff is overdone because customer relationships, trust and data security remain valuable moats, and cites Adobe, Salesforce and Constellation as attractively valued.

ADBE — LONG The author argues that while written code has become a commodity with AI, established software companies retain value through customer relationships, trust and data security, so the selloff is overdone. Adobe trades at an EV/(FCF-SBC) of 15.6, which the author considers very attractive. The author expects current prices may be looked back upon like ASML and Alphabet a year ago.

Companies such as Adobe, Salesforce, and Constellation are at very attractive valuations right now. Even when deducting the large SBC, the EV/(FCF-SBC) are: 15.6 for Adobe

CRM — LONG The author argues that while written code has become a commodity with AI, established software companies retain value through customer relationships, trust and data security, so the selloff is overdone. Salesforce trades at an EV/(FCF-SBC) of 21.8, which the author considers very attractive. The author expects current prices may be looked back upon like ASML and Alphabet a year ago.

Companies such as Adobe, Salesforce, and Constellation are at very attractive valuations right now. Even when deducting the large SBC, the EV/(FCF-SBC) are: 15.6 for Adobe, 21.8 for Salesforce

CSU.TO — LONG The author argues that while written code has become a commodity with AI, established software companies retain value through customer relationships, trust and data security, so the selloff is overdone. Constellation Software trades at an EV/(FCF-SBC) of 17.7, which the author considers very attractive. The author expects current prices may be looked back upon like ASML and Alphabet a year ago.

Companies such as Adobe, Salesforce, and Constellation are at very attractive valuations right now. Even when deducting the large SBC, the EV/(FCF-SBC) are: 15.6 for Adobe, 21.8 for Salesforce, and 17.7 for Constellation.

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u/41Investments Reddit r/ValueInvesting
Adobe attractively valued amid SaaS selloff
The author argues that while written code has become a commodity with AI, established software companies retain value through customer relationships, trust and data security, so the selloff is overdone. Adobe trades at an EV/(FCF-SBC) of 15.6, which the author considers very attractive. The author expects current prices may be looked back upon like ASML and Alphabet a year ago.
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This Reddit post, published January 25, 2026, features u/41Investments discussing ADBE, CRM, CSU.TO. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/41Investments  · Tickers: ADBE, CRM, CSU.TO