Tech Talk – SaaS-Pocalypse
Despite moderately cautious investor sentiment, today’s session marks yet another day of sharp declines for software stocks. This move is driven almost entirely by reactions to fresh news and speculation about the capabilities of Anthropic’s software.
The sell-off no longer seems limited to companies that, in some hard-to-pin-down way, have built “too little AI” into their business models, given that Palantir, a company that is also, de facto, an AI play, has been sliding for several days as well. Over the past week alone, Palantir has lost more than a dozen percent in market value. Many investors and analysts see Palantir as potentially losing market share to Anthropic’s software.
It is not entirely clear how Anthropic, a company that loses money on every “token” used in its products, would be able to take market share from Palantir, which remains one of the fastest-growing and most profitable companies on Wall Street.
PLTR.US (D1)
The share price is increasingly struggling to hold the key resistance area around $130. Supporting the bulls are an oversold RSI reading and upward momentum in the EMA averages, which remains positive. Source: xStation5
Declines are also hitting Cloudflare, Snowflake, and ServiceNow. These companies are down about 10% in today’s session. What appears to be happening in the market today is an attempt to price in how an unprofitable, non-public product, offered by a company that is itself also unprofitable and not publicly listed, could disrupt a dozen different markets.
Markets currently dominated by companies that have been operating in them for decades and that, sooner or later, show no signs of being “pushed out” by AI.
Losses are also deepening in CrowdStrike and Palo Alto, with both stocks down about 7% today. Claude Mythos is said to be capable of autonomously finding vulnerabilities, which would supposedly eliminate cybersecurity companies from the market. Management, however, still has not explained why information about Claude Mythos leaked from Anthropic’s servers ahead of any official release, especially if the company truly has a model so powerful that it would strip entire sectors of their business rationale.
PANW.US (D1)
The stock’s valuation is slowly returning toward local lows. Further downside is supported by the crossover of the 100- and 200-period EMAs; however, sellers would still need to break through not one, but two strong resistance zones. Source: xStation
The material on this page does not constitute financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other specific needs. All information provided, including opinions, market research, mathematical results and technical analyzes published on the Website or transmitted To you by other means, it is provided for information purposes only and should in no way be construed as an offer or solicitation for a transaction in any financial instrument, nor should the information provided be construed as advice of a legal or financial nature on which any investment decisions you make should be based exclusively To your level of understanding, investment objectives, financial situation, or other specific needs, any decision to act on the information published on the Website or sent to you by other means is entirely at your own risk if you In doubt or unsure about your understanding of a particular product, instrument, service or transaction, you should seek professional or legal advice before trading. Investing in CFDs carries a high level of risk, as they are leveraged products and have small movements Often the market can result in much larger movements in the value of your investment, and this can work against you or in your favor. Please ensure you fully understand the risks involved, taking into account investments objectives and level of experience, before trading and, if necessary, seek independent advice.
