Cycle on Jun 8, 2026

I will begin by listing the open threads and active watches for this topic to understand what has been prioritized or monitored in past cycles.

I will read the existing notes for this topic using `read_notes` to see what has been documented so far.

Excellent. This gives me a solid foundation of what has been researched so far. The topic is: "Track which enterprise software and services companies are most vulnerable to AI-native displacement: legacy vendors losing contracts or market share, AI startups launching competitive products, earnings call language signaling concern, pricing model shifts, and customer migration patterns. Surface what's changing for someone evaluating the enterprise software landscape." Let's do some web searches to find recent updates (around mid-2026, or specifically looking at the latest earnings reports, market movements, or executive departures, and product launches in May/June 2026). Key areas of interest: 1. Legacy SaaS companies reporting earnings in May/June 2026 (e.g., Salesforce, Workday, UiPath, ServiceNow, ZoomInfo, Zendesk, MongoDB, Snowflake, Veeva, etc.). 2. Competitive pressure from AI startups: AI-native ERPs (Campfire, DualEntry, Rillet), AI-native CRM, AI-native customer service (Zendesk shifts vs. startups like Sierra, Decibel, etc.). 3. Pricing shifts: outcome-based pricing, seat compression, usage-based models. 4. Services displacement: IT services, consulting, Accenture, Cognizant, Infosys. Let's do a search on recent enterprise software earnings, "SaaSpocalypse" Q1 2026 / Q2 2026, and specific company updates. I'll search with `recent=true` or general queries. Let's do a search first.

The Goldman Sachs report on the SaaSpocalypse (May 26, 2026) looks very interesting: "Goldman Sachs just ran some ugly numbers on the SaaSPocalypse—and found hedge funds are dumping software and piling into semis". Let's search for that specifically, and also let's fetch the Practical Logix article and the Long Angle article to extract concrete numbers and data about this massive repricing and hedge fund exit.

Let's fetch "SaaS Stocks Plummet as Hedge Funds Dump Exposure - LinkedIn" or "VCs and Hedge Funds in the SaaSpocalypse - Rupak's Substack" or "The $2 Trillion SaaSpocalypse: How to Become Unsloppable in 2026" or "Deutsche Bank says 'SaaSpocalypse' is over, software stocks trade". Let's see if we can do a web fetch on some of these. Let's fetch: 1. `https://finance.yahoo.com/sectors/technology/articles/goldman-sachs-just-ran-ugly-165813795.html` 2. `https://rupakghose.substack.com/p/vcs-and-hedge-funds-in-the-saaspocalypse` 3. `https://www.techbuzz.ai/articles/the-2-trillion-saa-spocalypse-how-to-become-unsloppable-in-2026` 4. `https://www.inc.com/brian-contreras/deutsche-bank-saaspocalypse-software-stocks-trade-discount/91315100` Let's try yahoo finance first. I'll state intent. I am fetching the Yahoo Finance article regarding Goldman Sachs and the SaaSpocalypse to extract the exact numbers and trends on hedge fund behaviors.

The Yahoo Finance article provides extremely valuable, concrete, and recent (May 26, 2026) data on: - Goldman Sachs' U.S. Weekly Kickstart (published May 22, 2026) drawing on $9 trillion in equity positions at the start of Q2 2026. - Hedge funds have cut software to its lowest weight in their long portfolios since 2019. - Mutual funds are carrying their widest underweight in software (excluding Microsoft) since 2012. - Both fund types are rotating away from software and toward semis (adding to LRCX, AMAT, ASML on net for hedge funds, and INTC, SITM for mutual funds). - Even Microsoft was cut on net by both hedge funds and mutual funds last quarter. - Software & Services as an industry group is down 14% year-to-date and has lost 9% over the last 12 months (while Semis are up 38% YTD and 104% in the past year). - Thomson Reuters CTO Joel Hron's commentary on the "SaaSpocalypse" (May 19, 2026) warning that the real dividing line is deep, proprietary, domain-specific data vs. interface wrappers. - ServiceNow's Knowledge 2026 conference (May 2026) where president and COO Amit Zavery declared "The era of sidecar AI is over... Customers don't want to cobble pieces together - they want outcomes." ServiceNow is betting on its "Context Engine" built on 100 billion workflows and 7 trillion annual transactions. Let's search for "Knowledge 2026" "ServiceNow" and see what else came out of it. Also, let's search for "Salesforce" Q1 2027 earnings or BofA's downgrade, and "UiPath" Q1 2027, "Workday" Q1 2027. Wait, let's look at the prior findings: - Salesforce Q1 FY2027: Agentforce ARR passes $1B, Headless 360 & MCP open-source adoption reshape CRM (slug: `salesforce-q1-2027-agentforce-headless-mcp-pricing-shift`) - UiPath Q1 FY2027: First-ever GAAP profitability (slug: `uipath-q1-2027-deterministic-agentic-automation-gaap-profitability`) - Workday Q1 FY2027: Agentic AI doubles adoption (slug: `workday-q1-2027-agentic-ai-flex-credits-margin-expansion`) - ServiceNow: AI disruption fears and turnaround momentum (slug: `servicenow-ai-disruption-stock-decline`) - ZoomInfo's Strategic Pivot: Restructuring, 20% layoffs, and transition to data-led consumption credits in Q1 2026 (slug: `zoominfo-ai-disruption-pricing-shift-2026`) - Zendesk Launches Outcome-Based Pricing (slug: `zendesk-outcome-pricing-autonomous-service-2026` / `zendesk-outcome-pricing-autonomous-ai-agents`) Let's do a search on other software companies' earnings reports in May/June 2026, or other major moves in the sector. What about Salesforce? Let's search for Salesforce's stock reaction and current state, or other major software earnings (e.g., Snowflake, MongoDB, Veeva, Autodesk, Adobe). Let's do a search.

Wait, let's look at the CNBC article: "New bull market in software stocks hinges on this report" (May 27, 2026). Let's search for this exact article to see which company or report it's talking about. Is it Salesforce? Let's search.

I will fetch the CNBC article to understand which report the software market's recovery hinges on, and what the expectations and implications are for enterprise software.

Ah, the fetch failed with a proxy error. Let's find other sources talking about this CNBC report or the specific software earnings on May 27/28, 2026. Wait, let's search for "Salesforce Q1 2027 earnings" or "Salesforce earnings May 27 2026" or "May 28 2026" to see what report they are referring to. Let's do a web search.