RIP SOFTWARE - THE WORST SENTIMENT EVER

Summary from the TLDR Founders newsletter

Investor sentiment towards software companies has reached an all-time low, with many big cloud names experiencing massive stock price crashes following their earnings reports. The fear is that generative AI may disrupt the software model by reducing the cost of software generation to nearly zero, potentially eroding the premium charged by these companies over time. While software companies are investing heavily in AI, the payoff remains uncertain, and the durability and profitability of AI-generated revenue compared to traditional software revenue are still in question.