Q: Many software stock, such as CSU, sold off hard last quarter because of concerns about disruption by AI. Now that the these companies have all reported Q3 earnings, were there indications that this fear was misplaced? Or that AI is actually improving their earnings? Or is it simply too early to draw any preliminary insights?
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5i Research Answer:
It is still early. Results were generally good but there was no clear indication yet that AI is hurting or helping. We think in the short term as long as the companies continue to make accretive acquisitions then this may still be the primary driver of sentiment.