THE FED RATE CUTS – WHAT HAPPENS TO SAAS AND AI MULTIPLES NOW?

Summary from the TLDR Founders newsletter

The recent interest rate cut by the Fed has not led to a significant increase in software stock multiples contrary to expectations. This may be due to concerns about the fundamentals of SaaS businesses, which have shown weakening growth and plateauing profitability metrics. As a result, investors are left wondering whether SaaS multiples will bounce back to historical averages or settle at a new normal, and how the rising popularity of AI companies will impact the market.