Those single-day selloffs directly to related AI tools.
Longer term sell-offs a combination of many things, including AI fears which reduce future opportunities as Brad Gerstner eloquently explained: "The profit pool available to the agentic layer is increasing. When that happens, the discount rate [and the] terminal value of those software companies plummets…It could be true that you’re not going to replace [Salesforce], but it can also be true that it’s never going to trade at 30x free cash flow again. It’s going to trade at 17x free cash flow because its available TAM in the future is now dramatically and permanently changed."
Did the market drop because AI is changing things, or because the big tech companies are overvalued?
Those single-day selloffs directly to related AI tools.
Longer term sell-offs a combination of many things, including AI fears which reduce future opportunities as Brad Gerstner eloquently explained: "The profit pool available to the agentic layer is increasing. When that happens, the discount rate [and the] terminal value of those software companies plummets…It could be true that you’re not going to replace [Salesforce], but it can also be true that it’s never going to trade at 30x free cash flow again. It’s going to trade at 17x free cash flow because its available TAM in the future is now dramatically and permanently changed."
That was such an awesome weekly recap. Thanks Trung!