Software pulling back after rally; guest says investors need to be careful trading this sector due to AI disruption fears.
speaker1
What does 'be careful' mean? Don't trust this recovery?
speaker1
speaker1
I don't trust it. We're going through a generational transition in software from 'software eating the world' to 'AI eating software' and tokenizing software.
speaker1
Even Microsoft is on its back foot. Layoff announcements aren't great for seat growth, and companies digging in heels with price increases will probably backfire long term.
You've had tough notes on Azure. Have you gotten pushback?
speaker1
speaker1
I get a lot of pushback on Microsoft. Many SaaS analysts are afraid to criticize it as it's the strongest company they cover.
speaker1
The truth with Microsoft is Copilot probably needs to be given away. Charging $99+ for AI features is arrogant and unlikely to work.
speaker1
Microsoft will eventually have to give Copilot away or offer it with incentives/discounts.