parth mistry
@phm
parth mistry
Software stocks are trading at P/E ratios at ten-year lows while their current fundamentals remain strong. That is precisely the signature of a market repricing terminal value, not current earnings. Whether it is overdone depends on whether the next wave of earnings calls shows actual churn or accelerating growth despite the fear.
State of AI: February 2026 newsletter
However big and complex you think a legacy business is today, it will be vastly larger and more complex tomorrow, and it will do vastly more.
Steven Sinofsky • Death of Software. Nah.
Sometimes this created new from-scratch companies and sometimes it created new companies inside old ones.
Death of Software. Nah.
there are only 2 creation mechanisms of actors
Breaking into startups: three practical examples
Breaking into startups: three practical examples
Pretty solid advice on how to make a cold outreach so tight the receiver will definitely notice.
One of the luckiest breaks of my life was figuring out what work I wanted to do ~20 and feeling a deep sense of fulfillment from investing.
I didn’t appreciate it then. I do now.
Finding your direction professionally can be the difference between moving through the world with clarity and moving through it with a low-grade hum of anxiety that never... See more
I didn’t appreciate it then. I do now.
Finding your direction professionally can be the difference between moving through the world with clarity and moving through it with a low-grade hum of anxiety that never... See more
Michael Dempsey • The Luxury of Knowing
When Generative AI first emerged, SaaS firms’ playbook was to use foundation models from hyperscalers or OpenAI/Anthropic, then train and fine-tune them for specific use cases. The market now believes that, rather than augmenting software, Agentic AI may directly perform tasks for users ( bypassing the need for traditional software ). Since SaaS... See more
Notes on SaaS
The story unfolding here means that rather than incumbents, the native AI company's disruptors are the market leaders.
Classic software has hit its “late maturity” phase. TAMs have been exhausted, competition is up, and the entire industry’s growth rate will collapse, eventually to that of GDP growth, faster than most think. Because of this, the entire sector should trade on GAAP P/E multiple, like the other “late maturity” industries facing disruption.
Clouded Judgement 2.6.26 - Software Is Dead...Again...For Real this Time...Maybe?
AI and AI SaaS investing
When building financial models for investing, remember to tune them based on the stage of maturity that the market is in.