The US stock market has been taking a beating lately, but two SaaS stocks have been holding up remarkably well:
$SAP has already broken above its recent highs, while ServiceNow $NOW is also on the verge of a breakout.
The market is finally beginning to realize that the AI revolution may not upend every SaaS company. On the contrary, some high-quality SaaS businesses could be among AI’s biggest beneficiaries. These companies already have extensive enterprise customer bases, data, and established business processes. AI can not only work alongside SaaS products like ERP and workflow software to significantly boost internal productivity and cut costs, but also be built directly into existing products to deliver more value to customers and create new revenue streams.
AI will eliminate some SaaS companies, but it will make others even stronger.
$SAP has already broken above its recent highs, while ServiceNow $NOW is also on the verge of a breakout.
The market is finally beginning to realize that the AI revolution may not upend every SaaS company. On the contrary, some high-quality SaaS businesses could be among AI’s biggest beneficiaries. These companies already have extensive enterprise customer bases, data, and established business processes. AI can not only work alongside SaaS products like ERP and workflow software to significantly boost internal productivity and cut costs, but also be built directly into existing products to deliver more value to customers and create new revenue streams.
AI will eliminate some SaaS companies, but it will make others even stronger.
