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by whall6 3 hours ago
This is the right question.

Every company has a list of >WACC IRR projects that it can spend saved money on. If not, it’s a cash cow company that wasn’t growing in the first place and will allow shareholders to use the saved cash for other economically expanding projects.
2 comments
mlhpdx 2 hours ago
What companies can expand if the income of consumers is shrinking. This is the scary bit to me — AI crashes and takes the economy with it, or; AI succeeds as promised and people go unemployed and crash the economy.

The only path that isn’t disastrous is threading the needle of “just right” productivity gains. The people in charge aren’t smart enough to give me warm fuzzy feelings on that.

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Grombobulous 3 hours ago
What software companies will economically expand if the price ceiling on software is really low?
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whall6 2 hours ago
Economy != software companies. Maybe there needs to be a capital rotation out of tech? That’s speaking beyond my expertise though (and imo is a little too doomer). Continuing the hypothetical through: Healthcare, industrials, financial services and many other verticals have plenty of growth opportunities.

Otherwise it would probably be the software companies that are the most focused on last-mile details (where AI in my experience has the most trouble). I expect that as consumers are faced with more and more AI slop SaaS they will be increasingly willing and able to pay for quality.

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