SaaSmageddon
The S&P 500 has begun the year positively, but SaaS stocks are struggling, possibly due to Anthropic's new Cowork feature. The market seems to be overreacting to fears that AI will enable the replacement of SaaS businesses with internal AI-built systems, which seems unlikely but maybe it’s possible.
Headed into the week, software businesses were trading at historically normal levels. (Jamin Ball)
While the market sours on the end product, hedge funds are clamoring over the compute. (@dailychartbook)
If IPO markets really opened up, there is a backlog of bluechip Tech companies as possible IPO candidates. (@investingluc)
While 2025 IPOs improved over 2024, IPO activity was nowhere near ZIRP levels. However, the median IPO market cap is increasing, reflecting larger outcomes as companies remain private longer. (Meritech Capital)
Tech companies face challenges in achieving previously set private market valuations, contributing to sluggish IPO activity. Despite overall market highs suggesting an open IPO market, companies are unable to attain desired pricing. (Meritech Capital)
Seeing similar issues in software PE, where deals are significantly outpacing exits. (@dailychartbook)
Broader Tech M&A activity is picking up. (Meritech Capital)
With S&P 500 concentration, the question remains whether Big Tech will outperform. Goldman clients are betting on the S&P 493. (@MikeZaccardi)
Last year the S&P 493 contributed more to performance than Big Tech (@RyanDetrick)
The Tiger Cubs made it out ok, mostly achieving +20% returns in 2025. (@HedgeVision)
This is actually good advice from Mark Cuban. (Full Video)
