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[return to "Why software stocks are getting pummelled"]
1. latefo+G02[view] [source] 2026-02-02 19:39:18
>>peteth+(OP)
> The fear is that these [AI] tools are allowing companies to create much of the software they need themselves.

AI-generated code still requires software engineers to build, test, debug, deploy, secure, monitor, be on-call, support, handle incidents, and so on. That's very expensive. It is much cheaper to pay a small monthly fee to a SaaS company.

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2. airstr+O12[view] [source] 2026-02-02 19:44:45
>>latefo+G02
yes but investors don't know that

or for a more charitable comment, I think the issue people struggle with right now is how much of non-AI software will be replaced by AI-native versions. and it's not even a 1:1 mapping. we may see 5 different small companies replaced by a single AI interface. all TBD, but there's merit to avoiding that risk right now if you can just allocate to NVDA and GOOG instead

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