AI-Driven Demand Suppression: Why 'Cheap' Software Stocks Could Be the Next Big Value Trap

Enterprise software stocks, such as Adobe, Salesforce, and ServiceNow, have experienced significant losses, leading investors to consider a rotation to "cheap" software stocks. However, according to 22V Research analyst Jordi Visser, this is not a cyclical selloff, but rather the early stages of a structural shift driven by AI-driven demand suppression. Visser frames the move as a shift from buying SaaS to building and modifying software at near-zero marginal cost, suppressing the entire buy-side market for software. He compares the "cheap software" trade to buying snack companies after appetite-suppressing drugs like Ozempic went mainstream, warning that it may be a trap.