$Adobe(ADBE)$ $ServiceNow(NOW)$ $Intuit(INTU)$ $Trade Desk Inc.(TTD)$ Shorts in the long semis / short SaaS trade have had some impact, but the SaaS drawdown also feels organic to me. Snowflake has mostly recovered its drawdown since March, yet residual short interest hasn't really come down much.
The market seems to recognize that enterprise companies acting as system of record will keep playing a role.
NOW is positioning itself as a middleman in AI diffusion through the enterprise by calling out AI revenue.
Once Adobe and a few other enterprise software companies establish their middleman positions, I think you'll start seeing organic dollars flow back into some of these names. They are domain experts and should be able to articulate that clearly. The FCF yield helps too.
I've started a position in TTD. It looks like a bottom is in.
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