ANF - The Rally Continues Except For The Software Apocalypse - Invest Now
2024-06-02 23:13:14 ET
Summary
- The rise of generative AI is causing concerns about the future of enterprise software and its business model.
- CEOs are paying close attention to generative AI and its potential disruptions, leading to a decrease in investments in enterprise software.
- Existing software companies are adopting generative AI, but market participants fear that startups or AI platforms will replace them.
Yes, I usually focus on trading, and we can discuss where the market will go later in the paragraphs below. I use these pages to think out loud about where the market went the week before and likely where it is going. Then as the new week begins, I compare the action to my writing and adjust accordingly - most of the time that affects the near term, so trading is top of mind. What is going on with enterprise software is big and wrongheaded. Market participants need visibility to invest, and right now, two things are happening to obscure enterprise software's business model. The first is the AI narrative, AI will be so smart, why do you need enterprise software? That is the simplified notion, you can have your business analyst just tell AI to set up all the enterprise software you need. That sounds so easy and so inexpensive, who needs Salesforce ( CRM )? The enterprises are busy creating generative pilots that they don't want to commit to bigger subscriptions or start subscriptions to new cloud products, that is the other piece that we are dealing with....
The Rally Continues, Except For The Software Apocalypse - Invest Now