Software companies' business models are 'under assault' from AI

Core Viewpoint - The discussion highlights a shift in sentiment towards legacy software stocks, with a growing belief that companies like Salesforce, Workday, and ServiceNow may be in a precarious position due to advancements in AI technology [5][6]. Software Industry - There is a notable concern regarding the future of legacy software stocks, with a belief that their business models are under threat from AI advancements [6]. - The recent repricing of software stocks is seen as a reflection of declining hiring needs and increased productivity per employee, indicating a fundamental change in the software landscape [3][4]. - Companies that have historically relied on consistent pricing and expansion, such as Salesforce, may face challenges as their terminal values are reassessed in light of AI developments [4]. AI Sector - The future investment focus is expected to shift towards AI-driven companies that are built from the ground up, rather than legacy software firms [5]. - The productivity gains from AI tools are anticipated to reduce the need for traditional software solutions and the associated workforce [8]. Cryptocurrency Market - Bitcoin has shown signs of stabilization, but there are mixed opinions on its future trajectory, with some analysts predicting potential declines [9][10]. - Companies like Robinhood are diversifying beyond crypto, which may help mitigate weaknesses in their crypto-related business [11]. - The volatility in the cryptocurrency market has led to a demand for more sophisticated treasury solutions that can manage risks associated with Bitcoin and Ethereum [14].