Chit Chat Stocks Software Stocks Collapse; Jerome Powell Takes a Stand; Taiwan Semi's Capex Surge
Jan 16, 2026
The discussion kicks off with insights on the 'software apocalypse' and the struggles of major SaaS companies. A lively debate follows on the housing market dynamics and Jerome Powell's recent statements about monetary policy. TSMC's ambitious expansion plans and its geopolitical implications take center stage, as well as a deep dive into the strategic value of Viator for Airbnb. The hosts also explore intriguing picks like TripAdvisor and highlight the transformative potential of AI in software development.
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Software Sector Facing Broad Multiple Compression
- Software stocks broadly have been clobbered, with many major SaaS names down materially over 12 months.
- Market-cap weighted ETFs mask this weakness because Microsoft and Palantir buoy indexes.
Reassess Paying Up For Quality
- Don’t pay up blindly for quality when narratives can change quickly and multiples compress.
- Re-evaluate high-quality software names when valuations reflect slower growth.
AI Won’t Instantly Replace Enterprise Vendors
- Claims that enterprises will replace vendor software by building in-house with AI are overstated.
- Switching, maintenance, and operational risk keep many firms buying proven third-party software.