Posts tagged "Innovation"

The press around AI putting pressure on well-established SaaS companies is gaining some momentum. Note: We are not discussing specific stocks and valuations. Our focus is on the impact of AI on software companies. Analyst Ratings Published 08/11/2025… "Melius Research downgraded Adobe… warns of ongoing multiple compression for software-as-a-service companies… ‘AI is eating software’ …” AI isn’t a shiny add-on anymore. It’s like a sneaky wave that’s pushing SaaS valuations lower. Investors see that and...

From WSJ piece on Warby Parker: >Many things have gotten pricier in the past 15 years. Not Warby Parker's most affordable glasses, which have cost $95 since the brand’s inception in 2010. Warby Parker grew 14% last year. It did this while keeping its hero $95 price point. This shows that a focused value proposition can thrive even with inflation. The company used a few key strategies. It controlled its supply chain. It created a...

Ben Thompson's latest piece hits on something crucial: when computing paradigms shift, yesterday's winners often become tomorrow's strugglers. >The risk both companies are taking is the implicit assumption that AI is not a paradigm shift like mobile was. In Apple’s case, they assume that users want an iPhone first, and will ultimately be satisfied with good-enough local AI; in AWS’s case, they assume that AI is just another primitive like compute or storage that enterprises...