zlacker

>>peteth+(OP)
Is it AI or just the market realizing that some of these companies were ridiculously overvalued to begin with.

Here are the p/e ratios of companies mentioned in the article, after the said "pummeling":

* ServiceNow - 70.66

* SAP - 28.70

* Salesforce - 28.15

* Workday - 73.16

* Microsoft - 26.53

So they range from "a bit high" to "still completely bonkers".

>>paxys+Sx2
I would say that MS here is undervalued. They do not offer some small software package for a given business problem but the whole shebang - the OS, mail, calendar, office suite, IAM, cloud, etc. + support for each and the whole integration.

You can't realistically replace that with some LLM solution (in the near-term at least) and they can use the AIs to reduce their costs which is mostly people.

>>margor+bW2
Microsoft has consistently proven over the last five years that they have zero ability to execute. It's an astounding failure after failure to do anything right.

>>ronces+Xc3
All my Microsoft friends constantly berate the state of their hiring pipelines. Sprinkle on a paltry comp and this is hardly surprising.

>>yuucc+rh3
It was so ridiculously shortsighted of them to decide as a strategy to underpay all their employees compared to the industry standard, especially considering their ambitions are still fairly unbounded (meaning it's not like they said everything we do will be easier than Google or Meta so we don't need to compete for the same pool of talent).

But maybe such a decision was inevitable in their culture. And now it's very difficult to correct.