Newscasts - Software selloff 'biggest opportunity so far in 2026,' investor says
10/02/2026 22:03
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_s4735oyg&referenceId=tag:reuters.com,2026:newsml_RW438810022026RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: Joe Hegener, founder and chief investment officer of Asterozoa Capital Management, said the recent "indiscriminate selling" across software stocks will help separate the winners and losers in the sector, highlighting Datadog as a company that is "better positioned now with the adoption of artificial intelligence." Short Link: https://lseg.group/4apl2l0 Video Transcript: Software space, as you probably know, has gotten crushed over the last handful of months as a function of fear and speculation that artificial intelligence is going to chip away at the moat of all of these businesses and render all these businesses obsolete. And there are definitely going to be some losers and some disruption as it relates to some of these software businesses. But the sheer indiscriminate selling across the entire complex, in our view, is the biggest opportunity so far in 2026. In general, when we look at software, one of the key differentiators we believe between the potential winners and losers is the business model. Is it a per seat subscription business model vis-a-vis Salesforce, or is it more of a usage-based, computation usage-based business model? And so to that end, a company like Datadog, for example, who had earnings this morning, it had a great earnings report, and we believe that that business is actually much better positioned now with the adoption of artificial intelligence versus a Salesforce which could arguably be completely replaced by a few cloudbots, and a couple of other names that are similar, even though the valuation is quite high, a company like Snowflake, we think is going to do quite well with the adoption of artificial intelligence.