tech
Orlando Bravo says some software names hit by AI deserve a valuation cut
The Thoma Bravo co-founder said that some of the software stocks getting hit by the AI wave deserve a lower valuation.
TL;DR
- Some software companies facing AI disruption "very warranted" decreases in valuation.
- Many companies hit by AI would have faced disruption anyway.
- Thoma Bravo overpaid for its 2021 acquisition of Medallia, admitting it was a "mistake."
- Software stocks have been impacted by AI tools threatening existing services.
- Some software companies have been "severely punished" with "unjustified" valuation hits.