HOW MARKETS PRICE AI RISK

Summary from the TLDR Founders newsletter

Vertical software stocks are down 43% from their highs. DevTools are down 21%. The gap doesn't track with which sectors AI can actually replace - it correlates almost perfectly with growth rates. Slow growers (8-11%) are getting crushed while faster growers (21-22%) are holding up. The market isn't pricing in AI disruption. It's pricing in who can outrun it.