Well said, though with some B2B software products, "the moat" might be the sales/support team that builds up and maintains a relationship with the customer. That's basically the edge my company has, which is why we're taking market share from competitors.
I'm on the tech side of things but constantly adding bespoke features etc for customers to tailor the product to their needs.
Aside from this it's pretty much a commodity business.
Software stocks are becoming hated equities these days. Many got bid up in the AI hype even as their management teams kept emphasizing their AI prowess and revenue generating potential...when in reality we found out recently that there was not much behind the curtain. e.g. MDB. In this Q1 earnings call we clearly found out that they are struggling to convince their customers that they have AI tools, software, services. They remain a database company that is trying to not get disrupted or budget-cut out of the equation.
I could not agree more with you that as investors we have to be more discerning in terms of which software stocks we buy. Lots of competition. Many vendors vying for the same enterprise dollar.
Well said, though with some B2B software products, "the moat" might be the sales/support team that builds up and maintains a relationship with the customer. That's basically the edge my company has, which is why we're taking market share from competitors.
I'm on the tech side of things but constantly adding bespoke features etc for customers to tailor the product to their needs.
Aside from this it's pretty much a commodity business.
And a great sales staff is hard to judge as an outside investor
Yeah requires a lot of scuttlebutt.
Software stocks are becoming hated equities these days. Many got bid up in the AI hype even as their management teams kept emphasizing their AI prowess and revenue generating potential...when in reality we found out recently that there was not much behind the curtain. e.g. MDB. In this Q1 earnings call we clearly found out that they are struggling to convince their customers that they have AI tools, software, services. They remain a database company that is trying to not get disrupted or budget-cut out of the equation.
I could not agree more with you that as investors we have to be more discerning in terms of which software stocks we buy. Lots of competition. Many vendors vying for the same enterprise dollar.
Cheers!
It is probably a good time to be an investor that understands software. But that is not many people