Broad sector basket covering a wide range of software-as-a-service companies.
2 takes · first discussed Feb 7, 2026
Private company — no public price to score. We track what they said; valuation-mark tracking is on the roadmap.
Sacks believes the 'all SaaS is dead' narrative is overstated for entrenched systems like Salesforce, but sees a real threat that value capture shifts to a new agentic layer on top of existing SaaS, compressing future opportunity for these companies.
Gerstner argues that 90% of SaaS stocks deserve to be down because AI is permanently compressing their terminal value multiples — even if revenues remain stable, the available profit pool is shrinking as value migrates to the agentic layer.
The hosts broadly agree that AI poses a structural threat to SaaS valuations, though they differ on severity. Gerstner (bear, high conviction) argues that 90% of SaaS stocks deserve to be down because AI is permanently shrinking their available profit pools and compressing terminal value multiples — even revenue-stable businesses may never again command the high free-cash-flow multiples they once did. Sacks takes a more nuanced view, pushing back on the "all SaaS is dead" framing for entrenched platforms like Salesforce, but conceding that the real risk is value migration to a new agentic layer built on top of existing SaaS, effectively relegating current SaaS businesses to a commoditized lower layer of the stack. Both agree the threat is structural rather than temporary, with disagreement centering on how broadly and severely it applies across the sector.
Sacks believes the 'all SaaS is dead' narrative is overstated for entrenched systems like Salesforce, but sees a real threat that value capture shifts to a new agentic layer on top of existing SaaS, compressing future opportunity for these companies.
I think this like very dire prediction of all SaaS is dead is overstated. However... the risk for the SaaS companies... it's that they become an old layer of the stack that now there's a new layer that gets built on top of.”20:31
Gerstner argues that 90% of SaaS stocks deserve to be down because AI is permanently compressing their terminal value multiples — even if revenues remain stable, the available profit pool is shrinking as value migrates to the agentic layer.
90% of them deserve to be down... it's never gonna trade at 30 times free cash flow again. And it's going to trade 17 times free cash flow because its available TAM in the future is now dramatically and permanently changed.”17:42