The Canadian Investor SaaS Stocks Are Getting Crushed. Buy the Dip or Stay Away?
Jan 26, 2026
A deep look at the sweeping valuation reset hitting major SaaS names and why many strong businesses are trading sharply lower. They unpack the classic moats—switching costs, ecosystems, and data—and how AI and LLM-driven automation threaten seat-based pricing. Rapid-fire company breakdowns highlight where markets may be overreacting and where disruption is genuinely risky.
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Rebuilt A Screener In 30 Hours
- Dan rebuilt a stock screener in about 30 hours using Claude without coding knowledge.
- He contrasts that with paying $15–$20k in 2021 to build a similar tool.
Seat-Based Pricing Is At Risk
- Seat-based pricing is particularly vulnerable because companies charge per user and AI reduces user needs.
- SaaS firms may shift to outcome- or usage-based pricing to preserve revenue but risk encouraging in-house alternatives.
Constellation’s Scale Brings New Risks
- Constellation faces valuation pressure from founder transition and AI risk across many niche businesses.
- Larger scale means acquisitions must be more carefully selected to avoid buying disruption-prone software.