Posted by petethomas 18 hours ago
If you're holding say a total market index fund, or s&p500, or even qqq or many tech index funds, this would get hidden by the so-far very good growth on other tech stocks.
however those system of record apps - will outlast most "A.I" companies - since the effective data is within their systems
GOOG is up 70% over the last year.
"Pummelled" seems extremely sensational...
MSFT is only up 3% over the last year
A lot of people are tense about the AI venture ouroboros and what it might mean for future software, especially people with money and little to no experience actually deploying software.
Edit: At the time I saw some memes claiming that roughly 1.5 trillion dollars in market value had evaporated, which if true is not a small sum.
> The value of listed American enterprise-software companies is down by 10% over the past year.
It's just correction.
MSFT went down because of overexposure in AI and because it is clear that people do not want it.
AI weariness is a thing, and if people go off the Internet or advertisers question whether humans or AI swarms are "watching" their ads it is over for the big players.
Trying to salvage the situation by hyping the relatively small code generation (theft) aspect is quite a poor analysis.
They mention sites like Base44 and Lovable. Sure, if tons of business was rotating out of software into no code AI solutions the article would have a point. But has a large portion of market cap moved out of AI into a few little no-code startups? Is Salesforce, Service Now, and SAP being replaced with no code applications? No. Absolutely not. These are small, niche companies. It does not explain a large downward movement in an entire industry.
Where have I seen this before? Oh right, the entire site, for months now. Nothing suspicious about that at all, I'm sure a swarm of other brand new accounts will reassure me 0.1 microseconds after being created. You guys sure do type fast!
Overheard a guy at a restaurant explaining how he builds phone apps with AI and no coding experience. When asked how he verifies the code works, he said he pastes it into a different AI to explain it.
That's the "slopware" problem in action. The code compiles. It might even work. But there's no understanding of what it's actually doing, no ability to debug when it breaks in production, no awareness of the technical cruft accumulating with every prompt. That's a problem for people creating software for others and is a huge opportunity for software developers to take prototypes and build real stuff.
Does anyone remember the RAD days of the 90s?
On the flip side, for people making software to solve THEIR problems, they don't need to make anything production quality. Its for a single user, themselves! Maybe the LLMs are good enough now that people don't need to buy or subscribe to software that solves trivial problems as they can build their own solutions. Maybe the dream of smalltalk, hypercard, and even early web where anyone can use the computer of what it was meant for is finally here?