What Wall Street Gets Wrong About SaaS – Roger Wong
February 10, 2026
Last week, B2B software companies tumbled in the stock market, dropping over 10%. Software stocks have been trending down since September 2025, now down 30% according to the IGV software index. The prevailing sentiment is because AI tools like Anthropic’s Claude are now capable of doing things companies used to pay thousands of dollars for.
But investors are wrong. Nvidia CEO Jensen Huang calls this line of thinking “illogical.” Mark Murphy, an analyst at JPMorgan uses the same word to describe the “expectation that every company will hereby write and maintain a bespoke product to replace every layer of mission-critical enterprise software they have ever deployed.”
Right now, the market seems very bearish on the prospect of software as a product category. I tend to share that outlook, but others don’t, so here is a very well-thought-through argument by Roger Wong as to why this may not be the case.
