Software is currently experiencing a turbulent storm characterized by rapid sales that are being dubbed a SaaSapocalypse.
The panic intensified this week as AI startup “Anthropic” introduced advanced capabilities to its Claude Cowork agent, fueling fears that traditional software-as-a-service models are on the brink of obsolescence.
Wedbush senior analyst Dan Ives, however, is standing strong against the pessimistic tide.
He claims that the market overreacts to “doomsday scenarios” which ignore the structural moats that surround established players.
Ives acknowledges that AI is an immediate headwind but insists on the scale of the disaster.
The enterprise customer is too entrenched with their digital architectures for him to consider abandoning them in favor of unproven AI-based models, which lack the capability to deal with massive data structures and guarantee security.
Palantir Stock: The “Messi of AI”, remains unmatched
Palantir Technologies, NASDAQ:PLTR, has been caught up in the broader downturn of software, but Dan Ives is remarkably optimistic, referring to the company as the “Messi” of AI.
Ives has a “outperform rating” and an aggressive $230 target price despite the premium valuation of this stock (nearly 20x earnings in advance) and its recent volatility.
Palantir’s Artificial Intelligence Platform is a foundational moat that rivals cannot replicate, according to Mr. Palantir.
Ives, a skeptic who is concerned about high entry costs, believes that the narrative of “Software Armageddon”, which focuses on the unique role of PLTR stocks in Department of War or large commercial sectors misses out the point.
Palantir helps lead the AI Revolution to the use-case phase, the Wedbush Analyst noted. He emphasized that Palantir will become more important than ever as companies move beyond mere experimentation and into actual production.
CrowdStrike Stock: The gold standard of AI-era stock
CrowdStrike Holdings’ (NASDAQ:CRWD) shares have been falling significantly in the face of a sector-wide decline.
Ives, however, views it as an opportunity to buy a table pounder, and reiterates its “outperform rating” with a price target of $600.
In the AI age, he sees CRWD as the “gold-standard” of security and likely the “operating system”.
Ives believes that the fear of AI agents bypassing existing security measures is a little “overblown.”
According to him, new AI-based players do not have “the current capability to hold all the enterprise data”, or the track record of protecting organizational structures against sophisticated malware.
Dan Ives believes that the current sale is only a temporary disconnection from reality, as CrowdStrike’s platform has become too ingrained into the global enterprise eco-system to be replaced by the current AI wave, which will make it the primary winner once the dust settles.
The post Wedbush – Buy these 2’still undervalued’ Stocks amidst Software Rout could be updated as new information becomes available
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