"Right after Facebook went public, there was a concern about this mobile transition, and their stock went from $42 to like $18. That was fear of a technology disruption. I've never seen a disruption that had this much anxiety and go across so many companies."
"You shouldn't be blogging about what's wrong with the prices. You should be quiet and picking them up off the floor."
"They're paying for these things. Even AI-native companies aren't abandoning traditional software vendors. Anthropic, which makes the Claude chatbot, uses tools from Workday and Salesforce."
SaaS stocks have declined in early 2026 amid concerns that AI generative tools like Claude Code could compete with legacy software companies such as Salesforce and Atlassian. Bill Gurley acknowledges these disruption fears, comparing them to the mobile transition that temporarily devastated Facebook's stock. However, he notes this anxiety is unusually widespread across the sector. Despite AI advancement, even AI-native companies like Anthropic continue purchasing traditional SaaS tools from Workday and Salesforce. Gurley advises believers in SaaS to adopt a Warren Buffett approach, quietly accumulating stocks during market panic rather than publicly complaining about prices. He also expresses concern about circular investment patterns between AI companies and infrastructure firms.
Read at Business Insider
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