Software Is Fine

4 months ago

Investors are overreacting to AI advancements in software, similar to past AWS announcements.
AI-native startups will disrupt the market by targeting low-end customers first before scaling up.
Venture investors are excited about founders leveraging AI to create superior user experiences and lower costs.
Current software stock volatility is driven by market flows and hedging, not fundamentals.
High-quality software stocks like Cloudflare and Snowflake have held up better than others.
Companies with slowing growth, high stock-based compensation, and recent acquisitions are underperforming.
Semiconductor and datacenter trends are influencing software stock movements.
Software will endure despite disruptions, as human behavior and market dynamics remain constant.

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