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Crazy times in the market today.
While the S&P 500 is trading near it’s all-time high, many companies are trading at their cheapest valuation level ever.
Mr. Market is looking for direction.
This provides incredible opportunities to rational long-term investors like ourselves.
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Mr. Market is Extra Moody
Never a dull moment on the stock market.
One day Mr. Market loves AI.
The next day he fears it will destroy every (software) business model on earth.
The sectors Mr. Market is moody about right now?
Software
Credit agencies
Data providers
We love these companies as they have high margins and a lot of recurring revenue.
But as the saying goes:
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The SaaSpocalypse
Today, all AI stocks seem to do really well.
On the other hand, software companies are in pain.
One of the main reasons? Anthropic recently released Claude Cowork.
It seems like the market thinks everything could be automated by a Claude plugin.
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Claude Cowork is a tool designed to automate tasks.
They help automate you in legal, sales, and marketing.
Those segments were once the bread and butter of SaaS (Software as a Service).
The market reaction? Panic.
Investors worry that AI agents could replace many software licenses.
Just look at what happened to these names last month:
S&P Global: -25%
FactSet: -31%
Moody’s: -21%
Paycom Software: -19%