Salesforce, Workday, HubSpot, Atlassian, ServiceNow, Adobe, and more are all down in the dumps.

Is the age of B2B software supremacy at an end?

Long favored for their revenue growth and strong margin profiles, many of these stocks have benefited from (and struggled with) lofty valuations. But AI—and the advent of “vibe coding”—is putting their moats under threat, so Mike and Emmet dig in to determine which software giants are oversold and which may be entering terminal decline.

The one thing they agree on: being mission-critical makes all the difference.

Software that provides systems of record, essential workflows, or cybersecurity is unlikely to be disrupted by internal tools built with Claude Code. As Emmet puts it, “outsiders are confusing creation with responsibility.” Most large organizations have complex, layered tech stacks that must be consistently maintained and cannot be readily replaced. It’s far more likely that existing providers will add AI capabilities. This argument has made CrowdStrike, Adobe, and Atlassian appealing to Emmet.

Beyond this, Mike believes software specialists creating tools for tight verticals and peculiar niches are unlikely to be upended by AI newcomers, as their markets are too small to attract meaningful attention. This has kept Constellation Software on his watchlist.

However, both agree that non-essential business software, like Notion or Typeform, could be on the chopping block.

We wrap with an edition of Follow Prophet.

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00:00 Intro03:52 The SaaS Apocalypse09:37 Mission Critical Software: Winners and Losers25:33 Switching Costs: The Underappreciated Moat28:28 Vertical Software and Niche Markets35:12 Resilient Software Companies49:55 Follow Prophet