AI Growth Stocks Lag Despite Nasdaq's New Heights: Salesforce, Adobe, and the Challenges of the SaaS Model

The Nasdaq Composite has hit new highs, driven by tech stocks, but many large software companies, including Salesforce and Adobe, have undergone significant sell-offs. The introduction of artificial intelligence (AI) is challenging the SaaS business model, which depends on growing user numbers. AI levels the playing field, eroding the moats of established players, making them vulnerable to disruption by newer, smaller companies. The market isn't rewarding Salesforce and Adobe for their AI upgrades.