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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
Many software names, including ServiceNow, Snowflake and Microsoft, were misunderstood, and that is now coming to bear. The consensus trade was long semiconductors and short software, so de-risking meant selling chip longs and covering software shorts. Cybersecurity stocks, once thrown out with the software selloff, have made new all-time highs and are in a bull market. x.com
Software stocks probably have a floor as results challenge fears that AI agents will displace them. Since the June 22 momentum unwind, IGV is up 25% and the SOX index down 22%. Atlassian and Salesforce jumped on solid results, plus an Anthropic deal for Salesforce, and possible Silver Lake interest lifted Workday. A new bullish twist says agents will use software tools 10-100x more than humans. Whether fundamentals back the rally is still open; a likely Fed hike and weak September are risks. … Show more
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
AI has erased engineering complexity as a SaaS moat, so software survives only with compliance or data lock-in. Tyler Technologies, Veeva and Guidewire are anchored in government, pharma and insurance rules, where leaving means a compliance audit; Veeva's revenue rose 16% while its stock fell 25%. Palantir's ontology locks in customer data. Salesforce, Workday, Adobe and ServiceNow are seat-based with neither moat, and BlackLine and nCino, though regulated, never went AI-native. x.com
Companies using AI to cut costs and expand margins are underpriced, and that efficiency trade is the same as the buildout trade because they all buy compute. AI margin gains show up in gross margin and headcount first. ServiceNow runs agentic AI internally, Salesforce grows revenue without headcount, Amazon sells compute and runs logistics with it, Alphabet cuts internal costs while owning the model and cloud, and Meta pairs flat headcount and rising margins with its own silicon. x.com
AI will not replace Fortune 500 CRM platforms, as the moat of Salesforce, ServiceNow and HubSpot goes beyond the software. It lies in the data model, integrations, workflows and customer records; agents may even raise the value of a trusted system of record. Thin workflow tools are vulnerable and seat pricing faces pressure. Platforms that make AI a native operating layer to expand usage and monetization should be pretty good investments; they look near the end of a multi-year correction. x.com
AI is forcing a repricing of the enterprise software business model, and for ServiceNow and SAP the reset is not finished. Claude Managed Agents eased production AI deployment, ServiceNow's AI bundling raised monetization questions, and SAP warned of short-term pain like its cloud-migration margin squeeze. Multiples compress before new economics are understood, and most software still trades at a premium on GAAP P/E and EV/FCF ex-stock comp. Workday at 1.7x revenue hints at a floor. x.com
These software names get stronger as AI grows, despite the early-2026 "AI will kill SaaS" sell-off. ServiceNow is becoming the control room that manages companies' AI agents. Salesforce's Agentforce brings in $1.2B a year and is tripling; Atlassian clients using Rovo spend twice as much; Adobe's business-safe Firefly earns $250M; Workday's agents bring nearly $500M. SAP and Snowflake hold the data AI needs, and Datadog monitors the extra systems AI creates, with the AI wave still early. x.com … Show more
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
AI agents are starting to do for free what Snowflake and other cloud software companies charge subscriptions for, erasing their pricing power. The same AI is a revenue engine for chips, as infrastructure spending flows through Nvidia, AMD and TSMC hardware. The split shows in markets: SOXX is up 25% from its March low while WCLD fell 5% and Snowflake 8.4%. x.com
AI agents could drive high demand for software, so these names should not be overlooked. The targets: ServiceNow $200, Microsoft $650, Salesforce $275, AppLovin $1,000 and Autodesk $350. x.com
