00:00yeah it's been actually a very bad season for them over the last six months frankly i mean you
00:04look at something like a salesforce i think it's from its peak to bottom it's now down 45 somewhere
00:09between 45 to 50 percent and when you look at the growth numbers or the revenue numbers you know i
00:14mean the decline over there is one to two percent so they're still growing around nine to ten percent
00:19which again i know it's not the 15 growth these guys used to grow at but you know when you
00:24look
00:25at overall enterprise tech spending ai is where the money is going to and the non-ai part of it
00:30is
00:31what's struggling so that's what's facing salesforce right now but i mean when you look at context of
00:37price to the actual fundamentals i mean it's it's a very different story so what are key market
00:43factors for salesforce that could cause the company to exceed or to fall short of expectations
00:48particularly in enterprise it spend i feel like this is what investors are really looking at
00:53yeah so the basic thing is all of these sas vendors sell their products on a per seat basis
01:00which means if a company if a bank is going to hire more people more sales people they're going to
01:05use
01:05their software to you know be more productive same thing for an hr software company what's really
01:11happening is as companies are investing more in ai they're actually not hiding those white collar workers
01:17at that same level that they used to and that's really what's driving down
01:21some of this demand for software now on the other hand the big narrative is software won't survive
01:28in the next five years because of ai and that's what's really cutting the valuation more so there
01:33are two different you know i would say issues that are going on with sas names right now
01:38and that second one that one seems to be the real worrisome the concern that ai may eat this you
01:44know the
01:44software industry and you know most of us don't even have a good idea what ai is what it can
01:50do what
01:51the applications may be in the future but that doesn't seem to stop investors from selling these
01:56names here so is there a sense of we just got to let this play out no i think so
02:02and again that's
02:03partially the reason but you know you saw some relief rally yesterday all the the sas names are really
02:08well good up today um i think jensen said uh it publicly that you know it's not the people you
02:14know it's not going to be like that bad or you know he was a little positive on it um
02:18the sas
02:19company themselves are you know really talking about um accelerating their ai push uh so there is a
02:25there's a lot of uh i would say opposing forces right now you know we are on the side that
02:30at
02:30least the really large well-established firms that sell into big enterprises i think they should be
02:37fine it's these really small vendors that are selling point solutions that may be up to risk of disruption
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