Bank of America double-upgraded Salesforce this morning.
It went all the way from Underperform to Buy, and the headline in Barron’s says the AI overhang is over.
Salesforce (CRM) sells customer relationship management software, the program companies use to keep track of their customers and sales.
I want to ask one question. Where was that upgrade when the stock was down 40%?
The Upgrade That Showed Up After The Stock Recovered
Nobody upgraded Salesforce at the bottom. Wall Street waited for the stock to recover until it was only down 13%, and then the upgrade showed up.
This is beyond Monday morning quarterback. I am so sick of the entire industry doing this.
To me, at this point, that’s a great sell.
Why TheoTrade Could Build Its Own Version Over A Long Weekend
I’m saying this from a development point of view. Here at TheoTrade, we have to use database software. We don’t use Salesforce, but the company we do use, we’re already looking at it and saying, yeah, we can build that.
With AI, it’s like a long weekend. We haven’t done it yet, but it’s only a matter of time before we get pissed off enough to build it.
Why Software Stocks Can’t Grow When AI Can Copy Them
I believe the software stocks are dead. It’s going to take companies a while to move off of them, so it won’t happen overnight. But I don’t foresee any growth.
How do you grow when people are capable of ripping off your idea and your software?
One new trick is selling your data so AI can train on it.
Almost every company you sign up with has you sign a disclosure that says your data can be used to train AI, and I think that’s sick and disturbed.
Maybe not tomorrow, but their lifespan is gonna be a short one.
To your success,
Don Kaufman
