One is reminded, rather faintly, of Chicken Little. A perfectly tiresome fowl, convinced the heavens were collapsing. Though, naturally, it was merely an acorn. The moral, if one bothers with such things, is not to succumb to the prevailing hysteria. A lesson, one finds, particularly relevant in these rather frantic markets.
Certain investors, it seems, have adopted the role of that panicky bird. Worries about artificial intelligence – a subject about which everyone is suddenly an expert – have triggered a sell-off in SaaS stocks. The “SaaSpocalypse,” they’re calling it. How terribly dramatic. However, while the amateurs are busy flapping their wings, a more discerning element is quietly accumulating shares. A spot of savvy, wouldn’t you agree?
A Few Sound Propositions
Salesforce (CRM 0.15%) remains, despite everything, a rather solid proposition. They practically invented cloud-based customer relations, and continue to lead the field. Slack and Tableau, naturally, add a certain gloss. The recent dip, frankly, is rather absurd.
They’ve just announced record quarterly results, and anticipate further double-digit growth. Yet, the share price has suffered. Some suggest AI will be their undoing. A rather bold claim, considering the company’s management team seems to have a rather better grasp of the situation. The recent $50 billion stock buyback program – half of which is already underway – speaks volumes. As CEO Marc Benioff so aptly put it, they are “aggressively repurchasing shares because we are so confident in the future of Salesforce.” A perfectly sensible approach, one thinks.
ServiceNow (NOW +0.52%) also appears to have weathered the storm rather well. Their Q4 results were, by all accounts, quite triumphant – revenue up over 20% year-on-year. The market, however, has chosen to ignore such trivial details. A pity, really.
CEO Bill McDermott, with admirable directness, addressed the AI anxieties during the earnings call. He correctly pointed out that enterprise AI will be the driving force behind a massive wave of investment. ServiceNow, he asserted, is ideally positioned to benefit. And, to further demonstrate his confidence, the board has approved another $5 billion stock buyback. A man of action, clearly. He’s also extended his contract through 2030, which suggests he anticipates sticking around to enjoy the fruits of his labor.
Exploiting Mr. Market’s Fancies
Old Warren Buffett’s mentor, Benjamin Graham, spoke of “Mr. Market” – a rather eccentric fellow prone to irrational behavior. He occasionally offers stocks at ridiculously low prices, simply because he’s having a bad day. This current “SaaSpocalypse,” with Salesforce and ServiceNow leading the charge, is a prime example. A golden opportunity, wouldn’t you say? For those with the wit to seize it, of course. One shouldn’t simply follow the herd. It’s so dreadfully common.
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2026-03-24 11:43