AI Isn't Killing SaaS It's Reshaping It | Raleigh News

0:00So, you know how Wall Street was talking about a SaaS Boca-Lips? Like AI was going to wipe out all the software companies? Well that narrative took a serious hit last month. Palantir Technologies and Salesforce, two big players, saw their stock prices jump significantly. Palantir shot up by 51% in August and Salesforce climbed nearly 40%. Over the last three months they're both up too. This comeback was pretty wild because heading into August, both of these stocks were actually lagging behind. But then, their earnings reports dropped. Palantir showed massive sales growth, like 93% in the second quarter, and they even boosted their full year forecast because demand. From the US government and businesses is really picking up. Salesforce also beat expectations and raised their own annual outlook, plus they deepened their partnership with Anthropic. Now, Jim Kramer, the guy for mad money, thinks this turnaround wasn't just about good earnings. Pointing to a bigger market shift, apparently there was this hedge fund, situational awareness

1:03that had bet heavily against enterprise software, thinking AI would make it all. Absolutely. When that fund imploded, the selling pressure on these software stocks just vanished, and that's when the whole group started to roar back, supported. By those strong fundamentals we just talked about, Kramer also highlighted how Salesforce's rally, nearly 40%, really shut down the doubters. He believes their blowout quarter essentially obliterated the shorts. It wasn't just these two either. Other software companies like Beavis Systems and ServiceNow also saw significant gains after integrating AI into their offerings. So it seems like the market is starting to reassess the idea that AI is the death kno for software. Ultimately, Kramer's argument is shifting the conversation from, will AI kill SaaS? Two, which companies can actually use AI to build lasting profits? He's looking for companies with solid execution and real benefits, not just AI hype. Palantir for instance, is focusing on how businesses can use AI for actual decision-making,

2:08and Salesforce is showing how AI models become more. Powerful when connected to a company's data and workflows. That's your update from Raleigh News Today, powered by AI.