"Billions of dollars are flowing into artificial intelligence companies such as OpenAI and Anthropic, yet investors in software firms that should also be well-positioned to benefit from the AI boom have largely been left on the sidelines. Cloud-based company Salesforce is down 28% year to date, closing at $240.36. Adobe is down 21% ending at $346.74. And a Morgan Stanley basket of SaaS stocks, a group of software-as-a-service companies the bank tracks to gauge sector performance, fell more than 6% this year."
"For instance, Salesforce has been quick to embrace AI, with a plethora of AI offerings, including Einstein Copilot -- its very own conversational AI assistant, which layers on top of customer data, including sales, customer service, marketing, and commerce AI solutions. Similarly, Adobe unveiled a suite of generative AI tools packaged under its Firefly offering, folded into its consumer tools, including Adobe Photoshop and Premiere,"
Billions of dollars have been invested in AI companies such as OpenAI and Anthropic while many established software firms lag in stock performance. Cloud-based Salesforce is down 28% year-to-date and Adobe is down 21%, while a Morgan Stanley SaaS basket fell over 6% this year. Many software companies have added generative AI features, including Salesforce's Einstein Copilot and Adobe's Firefly integrated across products. Investor preference has shifted toward firms that provide AI infrastructure and AI PaaS because AI adoption begins with massive data and compute needs. Firms that store, organize, and deliver data are commanding greater investor value.
Read at ZDNET
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