Wall Street is Sleeping on THIS Software Giant

The entire software sector just got repriced like it's going to zero — but the numbers tell a completely different story. One company sitting in the wreckage has real profits, a platform moat that AI can't touch, and a setup that Wall Street is completely mispricing.‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­‌   ­

­ Folks, The software ETF (IGV) is down roughly 30% from its September highs. Over $2 trillion in market cap has been wiped out. The RSI hit 18 — the most oversold reading since 1990. And yet, many of these companies are posting huge year-over-year revenue growth with strong forward visibility. Something does not add up. And that is where this gets interesting! What Triggered the Sell-Off At the end of January, Anthropic launched Co-work — a platform of AI agents designed to automate the actual jobs enterprise software exists to do. CRM, project management, HR, finance — all handled by agents that take action without a human ever opening the software. Wall Street looked at this and started pricing every SaaS company like it was heading to zero. If AI can do the job of five employees, companies need five fewer licenses, and the entire seat-based SaaS model unravels. Oracle is down about 47%. Microsoft is down about 27%. Salesforce is down about 52%. Adobe is down about 63%. Monday.com is down about 80%.  The fear is real. But the market has taken it absurdly too far! Why the SaaS Panic Is Overblown Three critical realities cut against the doom narrative: 1. Building a beta is roughly 2% of the actual work. The other 98% — integrations, compliance, security audits, reliability, and the edge cases that surface at Fortune 500 scale — is not something AI solves overnight. 2. Gross retention across the SaaS sector is still hovering around 90%. Customers are not canceling. They are renewing. 3. The forward P/E multiple on software has dropped below the S&P 500 for the first time in history — from 84 times a couple of years ago to just 22 times today. Companies printing billions in free cash flow are trading like dying businesses. Dan Ives, one of the most respected tech analysts on the street, is calling this a generational buy. JP Morgan and Goldman Sachs both say the market has priced in the absolute worst-case AI disruption scenario. Goldman's research desk projects the application software market grows to $780 billion by 2030.  That is not a shrinking industry. History Rhymes — And It Favors the Brave In February 2016, a nearly identical SaaS panic played out!  LinkedIn dropped 44% in a single day. Tableau dropped 50%. Salesforce dropped 13%. Everybody said the multiples were never coming back. Months later, Microsoft bought LinkedIn for $26 billion, catalyzing a massive sector-wide recovery. Salesforce ran for the next five years straight. The investors who panic-sold spent the rest of the decade watching their old holdings print money for someone else. AI is a more serious disruption than 2016 — some companies will get hurt. But history is clear: when an entire sector gets repriced on fear, the market almost always overshoots.  The companies with real moats come out the other side stronger. Monday.com — The Setup of a Lifetime? Among the wreckage, Monday.com stands out as one of the most misunderstood names in the market. The company built what it calls a Work OS — a flexible digital workspace where teams plan, track, and manage projects in a single visual platform. It has expanded well beyond project management into CRM, software development, IT service management, and marketing — all on the same underlying architecture. The customer base ranges from small startups to Fortune 500 enterprises running thousands of seats. Why the Bull Case Is Compelling The numbers tell a story the stock price does not: ✔️ Paid subscriptions have grown about 27% per year on average. The company keeps nearly 90 cents of every revenue dollar — one of the best margins in software. ✔️ Larger enterprise customers are building internal tools directly on top of the platform, creating deep switching costs that AI cannot replicate overnight. ✔️ Monday Agent Labs and its new agent-building tools aim to turn the biggest bear case — AI killing software — into a growth catalyst. Management guided conservatively, which historically sets up a pattern of beating expectations once stabilization arrives. The stock has been destroyed well beyond what even the most bearish analysts projected. The average price target implies substantial upside, and most analysts still rate it a buy. These Companies Are Not Going to Zero Oracle is not going to zero. Salesforce is not going to zero. ServiceNow is not going to zero. And Monday.com — with real profitability, a defensible platform moat, accelerating enterprise adoption, and multiple product lines spreading the risk — does not appear to be going to zero either. These are real businesses with real moats, trading at prices that assume they have none of it. Anyways...  That's all for now!  Until Next Time, -ZT Team P.S. Want our text alerts? Text “ZIPTRADER” to 1-(855)-228-1598 to sign up!  (standard carrier data/text rates apply) ZIPTRADER LLC 5101 SANTA MONICA BLVD STE 8 #62, 90029, LOS ANGELES, CA This email was sent to ignoble.experiment@arconati.us BY READING THIS EMAIL & ALL ZIPTRADER CONTENT YOU AGREE: This is not financial advice. You must do your own due diligence on all information. ZIPTRADER LLC is a publishing company and we provide general information, opinions, & news coverage to viewers. 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