This feels less about “Clawdbot killing SaaS” and more about valuation compression meeting higher quality thresholds.
Cloudflare just printed 33% YoY growth with expanding FCF margins — that’s not a broken business. The issue is when a stock trades at premium multiples, even small changes in growth durability or AI monetization timelines can trigger multiple resets.
AppLovin’s dip shows how fragile sentiment is when expectations are perfection. In this environment, the market is demanding:
• Durable net retention
• Clear AI monetization (not just AI narrative)
• Expanding operating leverage
• Real free cash flow
The golden dip vs value trap question comes down to one thing: Is growth decelerating structurally or just normalizing after a hype cycle?
If SaaS can pair AI adoption with margin expansion, this is rotation — not collapse. If AI becomes margin-dilutive, then the multiple compression isn’t done.
The market isn’t killing SaaS. It’s repricing certainty.
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