Good evening, you're tuned into Markets Desk.
Software stocks are staging a serious rebuttal to the so-called SaaSpocalypse narrative tonight. Atlassian, Twilio, and Five9 all surged premarket after earnings beats driven by AI adoption, with Twilio alone climbing roughly twenty percent after citing what it called unprecedented demand for a core AI function. The message from these numbers is clear — the market had written off legacy SaaS too early.
That read gets reinforcement from Fundstrat's Tom Lee, who argues investors have badly underestimated software companies' capacity to adapt to and profit from artificial intelligence. Lee says the sector is now priced for a comeback, and he's putting money behind that conviction, calling current valuations an entry point rather than a warning sign.
Meanwhile, a quieter but significant transition is unfolding at Berkshire Hathaway. For the first time in decades, Warren Buffett will not be the central figure at the annual meeting, as Greg Abel steps into the chief executive role. Berkshire shares have struggled in this early post-Buffett period, but some analysts frame that weakness as healthy price discovery rather than a crisis of confidence in Abel's stewardship.
That's the tape. Markets Desk, signing off the floor.
