Unlike the usual correction after negative quarterly expectations, this time the “trigger” was the threat of a radical change in business models under the influence of new opportunities of artificial intelligence, notes create.ai.
Wall Street investors found themselves suddenly challenged to rethink the value of traditional SaaS players in the age of AI agents.
SaaS (Software as a Service) is a model in which software is not purchased but rented by subscription over the Internet. That is, the user does not pay for the program itself, but for access to it. Such programs include, for example, Microsoft 365, Salesforce, Adobe Creative Cloud, Google Workspace, etc.
“This is not just a correction in quotes – it is a moment of truth for SaaS models: investors are no longer willing to pay for growth that is not backed by clear monetization of AI capabilities,” one of the leading market analysts commented for the publication on what is happening.
How AI has changed the market
SaaS has been sold on a pay-per-user/workstation basis for decades. The widespread adoption of AI agents is fundamentally changing this approach and the logic of the business model.
The chain being built is simple. One AI agent can easily replace 3-5 employees. Consequently, fewer software licenses are needed. This means that the revenues of companies such as Microsoft will shrink considerably.
It is this chain of logic and fear that made investors hurriedly dump Microsoft’s shares. And crashed the market for its stock.
And it all started with the launch of autonomous features of Claude Cowork’s new platform from rival Anthropic. The platform is capable of performing tasks that previously required multiple specialists. This sharply reduced the attractiveness of the classic “licenses for space” – the main revenue model for Microsoft and a number of other corporations.
Many analysts have already dubbed this scenario the “SaaSpocalypse”, hinting at a possible structural crisis in the software sector.
This is confirmed by the fact that along with Microsoft, other software assets have also lost significant value: Adobe, Salesforce and ServiceNow have also lost double-digit percentages, reflecting investors’ concerns about the fundamental sustainability of business models and the payback of large-scale investments in AI infrastructure.
Nevertheless, experts have a twofold view. On the one hand, such a sharp market reaction emphasizes investors’ sensitivity to the new information agenda. On the other hand, many strategists call the fall an overrated and short-term phenomenon, pointing to Microsoft’s strong financial performance and the steady growth of its cloud business.
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Loss of capitalization in a day |
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| Company | Fall |
Capitalization loss |
|
Microsoft |
-16% |
~$400 billion |
|
Salesforce |
-11% |
~$90 billion |
|
Adobe |
-10% |
~$70 billion |
