Anthony Pompliano

okay why are software stocks getting re-rated and you've mentioned to me before that it's not so much are they going to be around it's more so are they going to grow in the future so maybe describe a little bit about this difference between uh worrying about whether the company survives versus whether the company actually you know drives growth so the the best way i want people to um

Is that also the equivalent of like a liquidity discount or premium where if you are long duration illiquid, there's going to be some compression?

Now, when we see all of this AI stuff, I think one of the aspects that I keep coming back to is, okay, so you can go on to Cursor or Cloud or whatever, and I can type in natural language, English, and just say, hey, build me an app that does X, Y, Z thing.

The immediate worry that everyone has is, okay, well, if I could say, build me a, I don't know, build me a DocuSign clone.

Great.

But the ability to have a document uploaded and sign it is some of the value of DocuSign.

But there's also permission management, the ability to send it, to coordinate across multiple people.

It's almost like the last five or 10% of the software is what really has a lot of value to it.

And so what I then start to ask myself is how many of these teams internally are going to take the time and effort to go and actually build out the last 5% or 10% to get the value?

And maybe the example that got me thinking about this is Dan Sondheim from D1 did an interview with Patrick O'Shaughnessy.

And in it, they were talking about

Well, Dan doesn't believe that software is going to have as much of a headwind because he went and he talked to the model companies, like the model labs, and he asked them, he goes, you know, are you guys building an ERP internally?

And they're like, no, we're actually about to sign a contract for a new one.

So he's like, you know, these are like the top model companies, the top software engineers, etc.

And they're still outsourcing to an ERP.

But he's like, but that's a system of record, which may be different than many of these other software companies.

And so how do you think about like what companies will build internally versus maybe it's just the existing large incumbent gets disrupted, but it's by a net new kind of startup where that's AI enhanced or AI powered.

And so it's less about like building.

NVIDIA, monster earnings, stock sell-off.

What's going on?