The SaaSpocalypse Has Cut These Stocks In Half

"Once upon a time, horse-drawn carriages were the primary means of transportation for those who did not ride horses themselves. The use of horse-drawn carriages lasted for approximately 3,500 years until the invention of the automobile. Since then the horse-drawn carriage has been reduced to a quaint reminder of an earlier time, but an otherwise impractical mode of transportation in the modern age."

"The advent and rapid development of Artificial Intelligence (AI) is now threatening the Software as a Service (SaaS) industry. Although perhaps not to the same degree, AI is nevertheless spooking investors away from a number of SaaS companies with functions apparently easily replicated and replaced by more comprehensive computing power. Especially vulnerable are Business Development Companies (BDCs), many of whom have significant direct investments in and/or financing deals in place with SaaS"

"Based in San Francisco, CA, Asana Inc provides a work management platform designed to help teams organize, track, and manage their work. Asana services businesses across various industries including technology, healthcare, and education to streamline workflows. Its SaaS platform supports a wide range of functions such as product launches, marketing campaigns, and goal setting. The company announced that it was pivoting to accelerate its own adoption of AI with its AI Teammates and AI Studio platforms in an effort to draw investors and clients back."

Horse-drawn carriages remained the dominant transportation mode for approximately 3,500 years before becoming impractical after the automobile. Rapid development of Artificial Intelligence is threatening the Software as a Service industry and is causing investors to exit SaaS companies with functions easily replicated by advanced computing. Business Development Companies with direct SaaS investments or financing arrangements face elevated exposure. Market turmoil has produced a mass selloff labeled the "SaaSpocalypse" by Jeffries. Specific companies hit include Asana, which offers cross-industry work-management tools and is accelerating AI adoption, and Docusign, which holds a large subscriber base in real estate, US government, and contract-heavy businesses.

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