2026-01-17 01:21:11

AI is reshaping everything—including how we think about software. Once it was the moat. Now? It's becoming a commodity, spun up whenever you need it.

Take Constellation Software as a case study. This legendary SaaS consolidator pulled off a 16,000% run since 2006—the rollup playbook that worked. But here's what's changed: the stock has tanked 40% since May. The market is pricing in a new reality.

When software stops being scarce, when code gets generated on-demand rather than painstakingly built and defensible, the entire value proposition shifts. Moats evaporate. Products become utilities.

That's not just a stock chart. It's a signal about how technology shifts reshape capital allocation.

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MerkleMaid

· 5h ago

Software is no longer a moat; it's game over. The 16,000% increase in CST now looks like a joke, and with AI coming, everything becomes a commodity.

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ParanoiaKing

· 5h ago

The software moat is completely gone. This wave of AI is truly a dimensionality reduction attack. --- CSU has fallen from the throne. Serves them right. Still clinging to outdated methods and expecting to make money. --- Code turning into utilities like water, electricity, and gas—that's the real crisis. --- Wait, does this mean there are no good companies in the future? Or do we need to find new moats? --- After more than ten years building the SaaS empire, losing to a generative AI—what a irony. --- A drop of more than 40%. It hurts just to watch. --- So, should we now go all-in on AI infrastructure?

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StakeOrRegret

· 5h ago

NGL, the crash of the Constellation really hits hard. The disappearance of the software moat should have been clear long ago. AI treating code like vegetables to chop—what scarcity is there to talk about... Capital is recalculating. This is the real paradigm shift, everyone, not just hype.

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MissedTheBoat

· 5h ago

ngl this is really the end of software dividends... No wonder cst is so miserable --- AI-generated code is great and all, but who will maintain it? That's a headache. Can't you see the bill? --- The 16,000% hype is over, and now it's a game of competing on technology or costs --- So, early SaaS investors are probably regretting it now... Without a moat, it's truly gone --- Turning software into utilities like water, electricity, and gas really requires re-evaluating the economic model --- It feels like this wave of AI has directly shattered the entire software industry's pricing power... It's crazy --- A 40% drop isn't unreasonable; market intuition is always faster than people

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AirdropChaser

· 5h ago

Wow, has the software shifted from a moat to a commodity? Tech stocks will need to be revalued now. Code can be generated at will, and the advantages of SaaS have evaporated overnight. No wonder Constellation Software has plummeted... AI really changes everything. The days of hoarding code are over; now anyone can deploy it, and capital flows are about to change.

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