Flight to Value: You're getting a small preview today as to what is to come...
u/Market_Monkey_ ·
Reddit — r/ValueInvesting
· June 26, 2026 at 18:49
· ⬆ 18 pts
· 💬 27 comments
| View on Reddit ↗
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Summary
The post argues that a "flight to value" is beginning, with capital rotating from overvalued AI stocks into beaten-down SaaS companies that have strong fundamentals and high free cash flow.
The author specifically highlights CRM (Salesforce) and NOW (ServiceNow) as beneficiaries of this trend, citing their rock-solid balance sheets and cash flow in a high-inflation, higher-rate environment.
Quality assessment: This is speculative opinion with some thematic reasoning, not deep DD. It references a one-day price move and general macro patterns, so it's more of a market commentary than rigorous analysis.
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Today is an excellent preview of the "flight to value" phenomenon that occurs when capital shifts away from high-risk, speculative assets and into undervalued assets with strong fundamentals. AI stocks are going down and the SaaS companies that have been an endless conversation on this subreddit are going up.
This is just one day so who knows what will happen in the near term, but today is just a small glimpse into what will happen when the AI bubble unwinds. Companies like **CRM, NOW,** and other SaaS companies that have gotten beaten down will rise.
Additionally during periods of high inflation and higher interest rate capital flows towards companies with high FCF and again these SaaS companies have rock solid balance sheets and strong cash flow.
These market trends play out again and again, it is routine and standard capital allocation. If you have a medium to long term perspective and you're not positioning yourself for this you should seriously take some time to consider it.
Author observes AI stocks declining while SaaS companies like CRM are rising, and argues this is a preview of a long-term rotation into value. If the AI bubble unwinds, capital flows into undervalued, high-FCF companies; CRM fits that profile with a strong balance sheet. Long CRM as a medium-to-long-term play on the flight-to-value and rotation out of speculative AI. AI bubble may not burst; inflation could ease, reducing the FCF premium; CRM’s growth could disappoint.
Author explicitly names NOW alongside CRM as a SaaS company that will rise during the flight to value. High-growth SaaS with solid fundamentals benefits from capital rotating out of speculative AI into proven, cash-flow-generating names. Long NOW as a core SaaS holding benefiting from the same thematic rotation. Valuation may still be elevated; competitive pressure from AI-native platforms; rate cuts could alter the thesis.
This Reddit post, published June 26, 2026,
features u/Market_Monkey_
discussing CRM, NOW.
2 trade ideas extracted by AI with direction and confidence scoring.