To The Moon

Following our review of All-time-high stocks in Consumer Discretionary, some SaaS companies are reaching to a new high In Q1. $ServiceNow(NOW)$ rose to a new high of $548.18 on 2nd June; $Salesforce.com(CRM)$ rose to a new high of $225 on 31st May; $Adobe(ADBE)$ rose to a new high of $438.53 on 2nd June; $Veeva(VEEV)$ rose to a new high of $200.44 on 2nd June. Most earnings beat estimates and continued to rise after the earnings. Among them, $Veeva(VEEV)$ released earnings on 31st May and rose 20% on the earnings. Some SaaS companies missed estimates in Q1, but still took a rally recently due to $NVIDIA Corp(NVDA)$ ‘s strength. Why SaaS companies are to benefit from AI-wave? In the research report of Generative AI - Part I: Laying Out the Investment Framework, Goldman Sachs predicts that the leading incumbents in the tech industry, including $Microsoft(MSFT)$ , $Alphabet(GOOG)$ , $NVIDIA Corp(NVDA)$ , $Amazon.com(AMZN)$ , $Salesforce.com(CRM)$ , $Meta Platforms, Inc.(META)$ , $Intuit(INTU)$ , and $Adobe(ADBE)$ , will be at the forefront of adopting Generative AI. In addition to the well-known AI concept, others are SaaS companies. These companies are well-positioned to shape the evolution of the tech industry by integrating Generative AI into their product roadmaps. Their access to large amounts of data gives them a competitive advantage and strengthens their market position. What Is a SaaS Company? AI-powered solutions to reduce adoption barriers for SaaS companies By leveraging Generative AI, these companies can unlock new possibilities and drive innovation in their respective markets. They can use the copious amounts of data they possess to develop AI-powered solutions that enhance user experiences, improve productivity, and provide valuable insights. User adoption may be hindered by the growing complexity of SaaS companies’ platform. Generative AI technology can help simplify the platform and reduce adoption barriers by improving onboarding, utilization, and engagement. This, in turn, can lead to better financial performance, including improved net revenue retention rates, increased new logo additions, and larger deal sizes. This adoption of Generative AI has the potential to generate sustainable growth for these companies.