Navigating the SaaS Apocalypse: Why AI Disruption is Mispriced | Deiya Pernas | Pernas Research

Software-as-a-Service (SaaS) companies currently face a "SaaS apocalypse" driven by fears of agentic AI disruption and the plummeting cost of code, yet these market concerns often overlook the inherent adaptability of established software firms. Deiya Pernas, co-founder of Pernas Research, argues that the market has irrationally sold off smaller-cap SaaS names, creating significant alpha opportunities for investors who distinguish between vulnerable products and those with genuine moats, such as proprietary API access or real-world operational utility. While high stock-based compensation remains a concern, companies like Sprout Social and Xometry demonstrate resilience by integrating into enterprise workflows and maintaining critical data advantages. Ultimately, the shift toward agentic AI represents a manageable evolution rather than an existential threat, and current valuation disparities provide a compelling entry point for disciplined, long-term capital allocation.