Application software: growth reset, not AI disruption
The guest argued the initial crash in application software names reflected a growth rate reset to low-to-moderate levels, not a pricing-in of full AI disruption.
MONETARY MATTERS WITH JACK FARLEY CHANGED ITS VIEW
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The Callback
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28 weeks between these two statements.
The bear case argued: a sharp sell-off in software stocks reflects a market re-rating of long-term growth expectations from 15-20% to 5-10%, driven by fears of AI disruption to business models.
The guest argued the initial crash in application software names reflected a growth rate reset to low-to-moderate levels, not a pricing-in of full AI disruption.