Navigating the SaaS Apocalypse: Why AI Disruption is Mispriced | Deiya Pernas | Pernas Research
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For SaaS companies, you're absolutely right. They've not shown at all the scares and fundamentals that reflect any sort of the the perceived beers that you're talking about. What the market is overlooking is that most of these SaaS companies have the DNA to change and understand the agentic disruption is an existential threat, and they are adjusting as we speak. And what I think is going to change the market perception is going to be these companies making credible adjustments in the agentic layer. It's priced for total bankruptcy, decapitation, debt. It's priced as a carcass right now, and it
Software stocks have been in free fall as AI's coding and agentic capabilities have expanded. It's clear that the potential for disruption is massive, but the broad nature of the sell off means valuations are at a level we haven't seen in years. And there is an opportunity for investors who can find the software companies that will emerge from the other side of this unscathed or even stronger with product improvements made for this new age of AI. In today's episode, I'll be speaking with Deja Pernas, co founder of Pernus Research, about the opportunities that they are seeing in software, and w
When we had talked, that was really the first leg of the so called SaaS apocalypse. And to us, it was very, very clear that all that really was the first leg of that was just a rationalization in what was previously very richly priced securities or stocks. And the and the index that I'm talking about is really application SaaS. If you yeah. I'm talking about HubSpot, Salesforce, Adobe, ServiceNow, those types of application type companies. There's no reason that some of those should have been trading at ten, twenty times sales to begin with. So if if now they're at, you know, 10 or seven or fi
What are some of the nuances that you're looking at to determine? Because because obviously, there are gonna be some companies that that do get completely disrupted. So the companies that get disrupted and I don't believe it's gonna it's because the,
the cost of code or trying to produce production ready code has has gone down to basically zero. It may be easier to build a SaaS tool right now, but it's even harder to build a SaaS company. First of all, nobody wants to fund a SaaS company. You still gotta build out customer service, sales. You have to make your SaaS product enterprise grade. There's also security workflow tools, integrations that go into that, a host of APIs that are always breaking. You gotta bring that all together in a totally reliable product. So the the threat that just because code has gone the the producing code has
We haven't quite gotten into the full swing of earning season, so it's not like we've heard from, a lot of CEOs or management teams in in official earnings calls yet. But you are seeing things like Allbirds saying that they're an AI company now. How do you make sure that a pivot isn't something like that that is clearly sort of tying on to a trend and they're just putting sort of lipstick on a pig and that that they're actually making the sorts of changes that you really wanna see that are keeping up?
Yeah. Good question. I mean, executives are very good at telling investors what they wanna hear. And for you to to be a good analyst, you have to realize that, basically, these you know, a lot of these exec executives are incentivized to lie to you. I'm not saying they're exactly lying to you, but they're certainly incentivized to do so for what are obvious reasons. For us, really, what it comes down to, we never take anybody's word for any
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