Q: Hello Team 5i & Everyone,

Would you mind providing a list of 10 American software stocks that are beat down because of AI fears that you think have good potential for a real recovery at some point in the future?

IGV seems to be holding up okay for now with the S&P500 in a downtrend, I assume because it's possibly "oversold".

Thank you!

Sandra

Q: I do not think you really answered the question about earnings for vitalhub. My look at them seemed they were pretty good but still down 10% today. Any thoughts?

Q: SaaS and Software Companies at Risk

The software sector has taken it on the chin in the last few weeks based on the "AI will eat software" theme.

In my opinion, you buy software companies that own things AI cannot generate or scrape.

Therefore, the survivor software companies should have two broad “moats” in the new AI age:

1. Data that is unique and private. If an AI can't get the data elsewhere, the value of this data increases.

2. Regulation. Hospitals won't switch to a chatbot that isn't FDA-approved. Same for governments.

Therefore, I wondering which companies will likely face challenges while others will thrive in this new world. I offered a few below, but please feel free to jump in or revise:

Thrive - For example: CSU, TRI, CRWD, PLTR, SNPS/CDNS, SHOP (not sure) etc.

Challenged - For example: CRM, Adobe, SAP, SNOW, NOW (not sure), etc.

Thanks 5i and Cheers.

PK