RIP Software? Worst Sentiment Ever | SaaS Valuation Crisis & AI Disruption Risk

Public software companies experienced their worst relative performance versus QQQ in 10 years due to missed revenue guidance, fading growth reacceleration hopes, and fear of AI commoditizing software margins. Despite heavy AI investments, companies are posting lower margins than expected given slow revenue growth, while PE exit paths are drying up due to increased leverage and disruption concerns. The article argues software is entering a mature, competitive phase where only companies that rapidly adapt to AI will survive, while others face valuation collapse.