Author argues AI has broken the per-seat SaaS model, making legacy names like CRM and NOW value traps while favoring consumption-based data-moat names like Snowflake.
CRM — AVOID The author argues AI has shifted software from per-seat to consumption-based models, compressing margins and potentially reducing dependence on agents provided by CRM. Because AI agents could make customer systems more efficient and thus lower consumption, revenues and profits for these businesses could fall. The author calls CRM a value trap with no visibility on future earnings, saying its historic earnings power has ended.
If there’s no visibility on future earnings then how can you value it? You can’t and that’s where we are with companies like CRM and NOW.
NOW — AVOID The author argues ServiceNow's per-seat model is being disrupted by consumption-based AI agents, compressing margins and risking lower consumption if agents improve customer efficiency. He contends NOW looks historically cheap but its historic earnings power has come to an end, making it a value trap without earnings visibility.
Historically they look cheap but their historic earnings power has come to an end.
SNOW — LONG The author argues investors who must own software should favor companies already on consumption-based models like Snowflake, since AI agents consume data 24/7 from places like Snowflake and Databricks. He sees data moats and AI-agent beneficiaries as the winners in the new status quo. The stated risk is that Snowflake's stock-based compensation to attract talent makes it unprofitable on a GAAP basis.
If you must invest in software invest in those companies that ALREADY had a model based on consumption such as SNOWFLAKE.
This Reddit post, published February 10, 2026, features u/Tallwhitedude123 discussing CRM, NOW, SNOW. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: u/Tallwhitedude123 · Tickers: CRM, NOW, SNOW