u/Icy-Sheepherder-7595 ·
Reddit — r/ValueInvesting
· May 04, 2026 at 19:28
· ⬆ 15 pts
· 💬 180 comments
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AI Summary
Summary
The author seeks value picks in sticky legacy SaaS names (SAP, INTU, CRM) to replace current holdings (UNH, LULU, NVO, MELI) and add to existing MSFT and ADBE positions.
Thesis: Enterprise software with high switching costs is undervalued relative to overhyped chip/memory stocks; selling winners (UNH) and losers (LULU) to rotate into these SaaS names is a better risk/reward.
Quality assessment: Speculation with some personal conviction but lacks deep fundamental analysis or valuation metrics; more of a portfolio rebalancing opinion than rigorous DD.
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Comments180
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I already own some MSFT (bought 100 shares just under $400), have ADBE at an avg cost of $272. But I'm looking to add more software specifically sticky legacy companies that are hard to replace overnight like everyone seems to think is going to happen.
SAP, INTU, and CRM have my attention, more so the first two though as I don't really see why enterprises would want to replace them or if they even can efficiently.
I would have to sell a few holdings to make room but I'm thinking it could be worth it. I can sell my UNH shares that are up 50% and my LULU shares that are down 32% and effectively break even there between the two. I just am hesitant as I actually do think LULU can come back, it's starting to get priced as if it's going out of business, but it doesn't seem to stop going lower. UNH I really think has almost topped out, even bullish projections don't have it going much higher and I feel I should take my easy win and run. And then roll it all over into the names I mentioned and/or probably more MSFT.
I have some NVO I'm looking to possibly dump, MELI as well. I would be taking a slight loss on those as well but the opportunity cost of not going all in on good tech based names that aren't overinflated chip and memory manufacturers is getting to me, the headaches are starting to make these seem not worth my time and energy, especially when so much of SaaS seems to be on sale.
Anyone else looking to do a similar move? I'm pretty bearish on the chip and memory stocks as they seem overvalued now.
Author explicitly names SAP as a top pick among sticky legacy SaaS companies that are hard to replace. Enterprises rely on SAP for core ERP, creating high switching costs; the author believes this defensiveness is mispriced. Long SAP as a value play in enterprise software with durable competitive advantages. Economic slowdown could delay enterprise IT spending; cloud migration competition from Oracle/Workday.
Author includes INTU alongside SAP as a top contender for sticky SaaS value. Intuit’s tax/financial software (TurboTax, QuickBooks) is deeply embedded in small businesses and consumers, creating recurring revenue and low churn. Long INTU as a predictable, high‑margin SaaS company with defensive moats. Regulatory changes in tax software; competition from new fintech entrants; slower adoption of AI features.
Author already owns 100 MSFT shares (cost ~$400) and explicitly states wanting to add more as part of the SaaS rotation. Microsoft’s Azure, Office 365, and enterprise software stack (Teams, Dynamics) are deeply embedded in corporate IT, with AI tailwinds (Copilot) driving future revenue. Strong conviction to increase MSFT allocation, seeing it as a core sticky legacy SaaS with growth optionality. Antitrust scrutiny, cloud competition from AWS/GCP, potential AI monetization disappointments.
This Reddit post, published May 04, 2026,
features u/Icy-Sheepherder-7595
discussing SAP, INTU, MSFT.
3 trade ideas extracted by AI with direction and confidence scoring.