Adobe, Salesforce and ServiceNow still generate massive cash flow, push deeper into AI and sit at the center of enterprise operations. Three of the biggest SaaS names remain beaten up in 2026; their valuations have been crushed, but the long-term opportunity may not have been. The market has swung way too far against them. x.com 

Software looks like a group that can lead the market higher, with many names from Palantir and ServiceNow to Zeta and MongoDB moving from late Stage 4 or Stage 1 into early Stage 2 uptrends. Sentiment is at an all-time low on fears that AI agents and chatbots will replace SaaS. AI will disrupt some areas, but many software businesses are using it to grow revenue, ship faster and expand operating leverage, and will thrive. The charts will separate survivors from the dead. x.com  x.com 

Adobe's problem is no longer valuation but bad sentiment toward software companies. It fell after hours in sympathy with ServiceNow despite trading around 15x trailing and 10x forward earnings while still growing 10%, and none of that matters right now. To recover, Adobe needs more collaborative projects and joint events with leading AI companies so it is seen as definitively part of the future. x.com 

Software stocks are bouncing back as investors realize companies like Microsoft and Oracle are becoming essential AI infrastructure rather than being replaced by AI. The IGV software ETF jumped about 13% last week, suggesting the worst panic selling may be over, and Bank of America sees a bottom forming. Even the hardest-hit names, Salesforce and Palo Alto Networks, are showing signs of life as investors move from fear back to quality. The sector is not completely out of the woods yet. x.com 

Zeta Global, ServiceNow, Datadog and CrowdStrike look increasingly attractive among software names as AI disrupts applications: businesses with proprietary data that build on AI and deliver intelligence and measurable outcomes could win. Cybersecurity valuations remain a concern. x.com 

Application software makers Adobe, Salesforce and ServiceNow are sneaky losers from the AI-lab slowdown, because frontier labs can now focus on their customers instead of AGI. Lab leaders including Elon Musk, Dario Amodei and Sam Altman have pivoted to warning that AI could kill you, which, with AI already polling badly, will make it much harder to attract investment. The fallout could be real. x.com 

Adobe's post-earnings drop looks like irrational sentiment, not a fundamental problem. Revenue and EPS beat, Q3 and full-year guidance rose, and AI-related revenue grew over 300% year over year, showing AI is becoming a growth engine rather than destroying Adobe. It keeps buying back stock at scale, and given its profitability and growth the valuation isn't expensive; long term it remains an undervalued software company. x.com 

Salesforce's reported shift from per-seat to outcome-based pricing, per David Faber on CNBC, supports the case for AI-native software. Moving to outcome-based fees lets software makers that tell an AI-native story benefit from AI rather than be disintermediated by it. ServiceNow is the favorite for the new model, Snowflake should do especially well, and Microsoft also fits the theme. x.com 

Adobe's stock is unattractive to investors while the AI rally dominates, even though the company itself is nowhere near dying. Once the AI ride cools off a bit, Adobe can see some rebound. x.com 

The death of software was greatly exaggerated: companies are building AI into their own products and making them more valuable, so major platforms like ServiceNow, Salesforce and CrowdStrike aren't going away. Smaller niche players may struggle, but the market may have been far too bearish on software, and Anthropic's IPO won't change that. From their 2026 lows, ServiceNow is up 84%, Salesforce 83% and CrowdStrike 173%. x.com