The market have completed decoupled from reality regarding SaaS stocks. Microsoft, Meta, Adobe, ServiceNow, Intuit, Salesforce, SAP etc have all posted triple beat earnings in the last 4 quarters and raised guidance.
In some cases earnings have accelerated since the adoption of AI. This has to be one of the largest difference between market sentiment and reality of fundamentals. Keep trying to find what is wrong with the companies and end up buying more because fundamentally all of these companies are sound and revenue is increasing.
None of these companies have seen seat compression, price compression, or de acceleration in growth. If I had anymore money I would buy more.
These are trading at historically low PEs at lower prices than literally 8 years ago with 3-6x the revenue.
I understand that their has been a rotation away from software and fears about AI; but when a company has a $70B Market Cap and just green lit $25B in buybacks (Adobe) while beating and raising guidance the last 3 earnings you eventually have to ask at what point is entire market completely regarded