SaaS Apocalypse

SaaS stocks have plunged 24% despite rising earnings estimates, resulting in a record divergence from the NDX and a historic dislocation relative to semiconductors.

Key Takeaways

• 1.SaaS stocks have experienced a severe 24% decline over the last three months despite earnings estimates rising by 5%.
• 2.The correlation between the Nasdaq-100 (NDX) and the software sector (IGV) has broken down, reaching the widest divergence on record.
• 3.Hedge fund exposure to SaaS is at extremely low percentiles, while the sector (IGV) has hit a major support line.

Table of Contents

• SaaS-apocalypse
• SaaS nets
• SaaS gross
• Trading trend
• Stocks lead...
• Not friends anymore
• That dislocation
• You have reached the support line

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