Why Are SaaS Stocks Crashing?

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[@papi2011]

You should make a video on MongoDB results last week.

[@TerryBogard-sh6nf]

Companies across the economy are optimizing. Software is no exception. Re the moat argument, that's too broad a statement. The internet runs on NET, CRWD has shown no weakness, CRM had a bad quarter but is an exceptional company (a lot of knee-jerk reactions to CRM, surprise surprised). SNOW has competition from DataBricks, which I think is a legitimate threat to the moat -- but there can also be more than one winner in the space. PATH has always been risky and as a risky growth stock. Rate cuts have been on hold, but easier access to money could help the economy and SaaS included (many SaaS companies are optimized for growth, not profit).

[@jerryhunter5242]

Brian, I’m surprised you didn’t mention possibility of increased chip costs affecting the profits in the short term.

[@yuzaR-Data-Science]

Thanks Brian, what about Palantir? The aren't seen to go down, don't they?

[@Cygx]

What we are seeing in the enterprise software market is that companies with growth are seeing revenue growth from substitution (displacement) since the IT budgets are capped. Only company making money hands over fist is Nvidia.

[@user-db2xe7nd7o]

Is it same for MongoDB?

[@aleanderperez8015]

It is

[@joelcazares9986]

Was thinking the same.

[@pranayk37]

Definitely not adding to my snow till they figure stuff out

[@zajunc69]

They were overvalued. For example still I wouldn't call snowflake cheap. Imo now it's fair value/slightly expensive. Me as an ivestor if I want to invest in company that is loosing money it has to have a potential to make at least 3x till 2030. Can snowflake be worth 150mld till then? I guess..

[@zajunc69]

In the meantime I'm almost certain amazon will be 2x by then, so why bother risking much more on snowflake?

[@theresamorgavi9196]

snow flake is too expensive for my taste at $125...but the market is crazy...over hype up as well as over reaction down...I prefer to buy good company over reaction down

[@UziGameGP]

Berkshire buying snowflake above 200 is absolute madness

[@bbs32]

It's easy. SaaS companies figure out how to leverage AI to automate their software evolvement iteration. And then they cut all the fat that is no longer needed. I don't know whether revenue growth will be back to the good old times after those "efficiency" initiative gets deployed, but the margin would be pretty good. It's brutal but it can be done.

[@fischX]

They don't have products someone need but products that someone may want. That's not good in a bear market.

[@aleanderperez8015]

This is the video i was waiting for… I have no idea on what to do… Im down in SNOW… I don’t mind holding but theres lots of uncertainty which to be honest i don’t like I been considering realizing the lost and looking elsewhere… we will see…

[@jankay8569]

44b company doing 2.8b revenue is just eikes! Especially with slowing top line growth. Plus, dont even get me started with their Sbc. This company's sole existance is to scam money from gullible investors and to make management rich.

[@joelcazares9986]

Can’t believe this channel hasn’t updated on MongoDB. 😮

[@theresamorgavi9196]

b/c it went down so much? lol

[@robin212212]

what is there to update that has not already been said? Company issued lower guidance for future revenue growth; need to wait for companies to ramp up usage as they implement their AI models.

[@papi2011]

@@robin212212 They don't have any AI models. They just use the AI buzz word to sell. AI is a completely different space.

[@EamonRuane]

No mention of the recent hack? 😮

[@BlizzardzRS]

Hack was on the customer’s end, not Snowflakes. They were just trying to shift the blame from the biggest data breach in history.

[@leweezo33]

Get out of my mind Brian.My first thought this morning was "I qiah the Brians would put out a vid on the software slump".. Kinda scary Got lucky yesterday, I sold / of my SNOW and bought more TMDX.. So far a good trade that I hope gets better

[@drmsgp]

do you think Palantir AIP is a threat to snowflake? it seems like it provides similar or better analytics and insights

[@dc1219]

Q based on my shoddy maths and your recent vids- you've recently sold or/and mentioned some LTH (google, microsoft, amazon etc) and most of these are up like 600%+ wasn't google like 10x? Your performance is 350% over 10 years, does this mean you've lost in the majority of your other positions?

[@gurusukh]

Simple reason: Just as software was eating the world over the past decade, AI is eating software this decade.

[@mattdukeshire3837]

If you’re someone who works with AI/ML, you know it’s not taking over anything right now. It’s increasing productivity. Lawyers and legislation will stop it from replacing much for at least the next decade. Always, I mean always, think about liability.

[@narinpratap8790]

This is such a reductive take on the topic... Anyone working on AI/ML will tell you how that most companies are nowhere close to replacing their employees with AI (or even their existing SaaS Enterprise Software vendors for that matter).

[@gurusukh]

@@narinpratap8790 You could be right on this. However currently the market thinks, that's not the case.

[@chaotan046]

chips are expensive, the AI product doesn’t

[@michaelmiddleton3311]

Tiny bit of irony that you used AI generated illustrations to make your point. Have not seen that here before. Maybe, therein lies your answer.

[@julescg]

Love a crude internet meme.

[@ajgillies]

Kind of a useless video except to sell your services elsewhere