Sebastian Siemiatkowski

What's going to happen is people are going to start solving that problem.

How do I get all of my data from the existing vendor and move it to the new vendor with the help of AI through one click?

That brings down switching cost, and that's when the real threat to SaaS comes.

I think the stock market woke up to that in the last few weeks, right?

It's not like any business is going to disappear overnight because people tend to stick.

They have used these things for a long period of time.

They like them, etc.

The question is, at what multiples should they trade?

And if you look at historically, software could trade at a price to sales.

I'm not going to talk price to earnings because some of them are unprofitable, so it's not an easy way to compare.

But if you do price to sales, they've been trading at 20, 30.

And now they're down at 5, 10.

But if you look at utilities, normal companies that are more utility, they may trade at 1 to 2.

So from that perspective, you would argue there is still some unfortunate potential to come down even further.

Look at Chegg.

In the US, right, they're now trading at 0.2.

ChatGPT was seen as basically wiping out their business a few years, and now they're trading at a depressed value.

And now the revenue is also coming down actually 34% last time I checked.

Is that going to happen?

I don't think so.