"The SaaS sell-off might not be over, but look for cybersecurity names to move their own way. Some of the SaaS names deserve to take a hit on the chin, and the big drops of 50% or more might actually be the start of a steeper crash."
"Agentic AI and tools like Claude Code have lowered the barriers to entry in software development. The barriers could fall much further, especially as the AI titans narrow their focus from broad benchmarks to coding."
The SaaS sector is experiencing a significant sell-off, termed the SaaS-pocalypse, with many stocks hitting new lows. Despite some investors regaining risk appetite, SaaS stocks may not benefit from market rebounds. AI poses a threat to various software business models, but not all companies are equally at risk. While some SaaS firms may deserve declines, buybacks can indicate confidence. However, the rise of agentic AI is lowering barriers to software development, potentially leading to further disruption in the industry.
Read at 24/7 Wall St.
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