Crash of Software Stocks: Why I'm Staying Away from Intuit
Generative AI and “Vibe Coding” threaten the margins of software providers because many applications can be created or replaced faster and cheaper.
Reading Time: 2 minutes
Software stocks have noticeably lost their shine over the past 12 months. A key reason for this is the growing threat from generative AI and what has now been termed "Vibe Coding”: Software is being created faster, cheaper, and with less manpower. This development calls into question the classic moats of many software providers. Margins that have been regarded as nearly untouchable for years could come under structural pressure. Those who take a selective approach can now find attractive entry points, especially where products are deeply...
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