Justin Saco of Saco Financial joins Jermal Chandler with a contrarian read on the AI software trade. During the so-called SaaS apocalypse, the market painted every software name as AI roadkill and sold them off together. Saco's point is that there are really two buckets: names that get replaced by AI, and names that bolt AI onto what they already do and turn it into a catalyst. His top conviction play in the second bucket is ServiceNow, a beaten-down name he thinks is making the stage one to stage two turn with strong fundamentals behind it.
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Chapters
00:00 A resilient market, rates matter
00:35 Hunting beaten-down names turning up
01:06 ServiceNow, the top conviction play
01:36 The two buckets of AI software
02:36 Put spread to finance a call spr...