SaaSpocalypse: is AI killing software companies and developers?

• Job postings have increased, but shifting from junior to senior positions.
• Job numbers are overall decreasing since 2023, after big layoffs from companies such as Cloudflare (20%), Meta (10%)…
• Stock market fears software companies may be disrupted by AI, giving them lower valuations.
• However, software companies are still growing and profitable.

Job

Citadel: Job Postings For Software Engineers Are Rapidly Rising

Yardeni: Information Technology: Creative Destruction on Speed

ZeroHedge: US Jobs Jump 115K, Smashing Estimates; Unemployment Rate Unchanged At 4.3%

Harvard: Résumé and Job Posting Data

Stack Overflow: Why demand for code is infinite: How AI creates more developer jobs

Not only is there a future for software development, but we’re on the cusp of enormous demand for code developed by humans.

Valorisation

Yardeni: Information Technology: Creative Destruction on Speed

IGV (software ETF) vs S&P500 vs SOXX (semiconductor ETF)

Example: ServiceNow

Private Credit & Equity

Bloomberg: Private Credit Has an AI Software Problem

Bloomberg: Software Make Up Nearly Half of Private Equity Deals

S&P Global: Software Debt Sell-Off Signals Cyclical Turn for Private Equity and Credit