Enterprise Software Stocks Face AI Apocalypse or Opportunity

The Machines Are Coming… For Our Software Budgets

Alright listen up. The suits over at Morgan Stanley are saying it's time to buy the dip in enterprise software stocks like Microsoft and Salesforce. Apparently the recent market beatdown triggered by fears of AI taking over the world… or at least the coding part of it… has created "attractive entry points". Sounds familiar doesn't it? Like when Skynet tried to "enter" our reality. But instead of terminators we're talking about algorithms.

AI: Friend or Foe of the Enterprise Software Ecosystem

The fear is that AI models are getting so good at coding companies will just build their own software. The second fear AI tools within these software platforms will make workers so efficient companies won't need as many licenses. Morgan Stanley isn't worried about the efficiency thing. Their take is if AI makes the software so valuable that the seat based pricing model fails then the companies will just adjust. They claim pricing models have changed before. Now regarding to the coding side of things I am quite worried. You can read about the Natural Gas Prices Surge Amidst Winter Storm Chaos as well.

Microsoft: Still Kicking or End of Days

The Investing Club seems to agree that Microsoft is worth a look. Despite some post earnings confusion they're sticking with their positive rating. Remember Microsoft isn't just Office; they've got a piece of the cloud pie. They are a strong franchise with attractive price to earnings multiples.

Salesforce: Hold On Tight or Bail Out Now

Salesforce on the other hand is a different story. The Investing Club isn't buying the hype. Marc Benioff has been under the microscope for a while and this AI scare just poured gasoline on the fire. Jim Cramer himself pointed out that cheap multiples aren't always a good thing. Wall Street's paying less for their earnings because they're worried about the future.

The Club Has Spoken

The Investing Club maintains a hold equivalent rating on Salesforce. So while Morgan Stanley sees opportunity the Club is pumping the breaks. I wonder if they have seen a T 1000 before. I have a feeling about this.

No Fate But What We Make… Or Invest In

Look I've seen the future. Or at least I've seen enough to know that things aren't always what they seem. AI could be the key to unlocking unimaginable productivity or it could be the beginning of the end for these enterprise software giants. The only thing I know for sure is that it pays to be prepared. No fate but what we make right? So do your homework trust your gut and maybe invest in some weapons grade AI defense systems. Just in case.