While investors have been piling into Nvidia and AI infrastructure, the narrative for Enterprise SaaS has shifted to “all-out destruction.” The fear? That AI will disrupt legacy software. The reality? A circular reasoning trap that has crushed valuations and created potential opportunities for patient investors.
In this episode, we analyze the current state of the software market, using Adobe (ADBE) and Monday.com (MNDY) as prime examples. We discuss why the “R&D Holiday” of the 2010s is officially over, why profit margins are compressing as companies spend heavily to integrate AI, and why Adobe’s recent $1.9B acquisition of SEMrush signals a new phase of competition.
We also break down why—despite the doom and gloom—revenue growth remains consistent and why this sector sell-off might be the time to start “bottom feeding.”
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Chapters:
[00:00] The “Destruction” of Enterprise SaaS
[01:00] Adobe’s Resilience
[02:00] The Circular Narrative: AI vs. Software
[03:25] The End of the “R&D Holiday”: Why Margins Are Shrinking
[05:30] Valuation Reset: Opportunity in Fear?
[06:30] Monday.com Analysis: Revenue vs. Rising Expenses
[08:45] Adobe Acquires SEMrush: The $1.9B Strategy
[09:10] Conclusion: Is It Time to Buy Software Stocks?
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Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
#Adobe #Mondaycom #SaaS #StockMarket #Investing #ChipStockInvestor #AI #Software #SEMrush #Valuation
Nick and Kasey own shares of Monday.com
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