Print the page
Increase font size
The Great SaaS Meltdown

Posted January 23, 2026

Matt Insley

By Matt Insley

The Great SaaS Meltdown

Software-as-a-Service (SaaS) has been one of the hottest tech sectors of the last 15 years.

Investors fell in love with the business model. And for good reason.

SaaS companies churn out recurring revenue, quarter after quarter.

They sell their services to businesses, and in many cases these companies depend on their SaaS vendors to run core functions.

For example, Salesforce (CRM) is a classic SaaS company. They sell the customer relationship management (CRM) software which companies use to manage, track, and grow customer relationships.

SaaS products often create a strong “lock-in” effect, meaning it’s very hard for customers to switch to a competing product.

When your whole business model depends on a specific SaaS platform, it’s difficult and expensive to move to a different provider.

So the best SaaS companies have always traded at a premium to the broad market.

But suddenly SaaS stocks are crashing, and investors want nothing to do with them. The reasons why might surprise you.

Your Rundown for Friday, January 23, 2026...

From Disruptors to Disrupted

The Nasdaq 100 remains near all-time highs. Nvidia and other hardware companies are absolutely hitting it out of the park lately.

Meanwhile, SaaS stocks are quietly crashing, down more than 20% since summer.

Take a look at some top SaaS names and their recent performance:

Oof.

Part of the reason these stocks are selling off is, ironically, due to AI.

AI-assisted coding allows skilled programmers to increase their productivity by 10x.

And a big concern emerging now is that instead of paying SaaS vendors, companies will build their own internal software using AI coding tools.

So the fear is that instead of paying Salesforce massive sums of money each year, companies will build their own internal CRMs using AI.

These fears are probably overblown. Even with AI assistance, building a SaaS replacement is no small task. It needs to be enterprise-grade, secure, and reliable enough to run a business on.

Right now, AI coding simply isn’t reliable enough. However, the market is forward-looking so it’s possible this will become a major threat in a few years.

However, the other problem with SaaS companies is more immediate and serious: their high valuations.

Take a look at Figma (FIG), previously one of the hottest SaaS companies in the world. Figma makes collaborative visual design products which compete with Adobe.

Customers love Figma, and investors did too. Until recently.

Figma has fallen 80% from its 2025 peak. Growth is strong at 38% YoY, so what happened?

Figma’s share price got way ahead of its fundamentals. Despite being down 80%, it still trades at 13x revenue. That’s pricey.

The company’s forward P/E ratio is 67. And over the past 12 months it lost around $900 million at a $13 billion market cap.

That’s expensive, even after an 80% drop.

With companies like Google and Nvidia churning out cash flow, investors are no longer willing to accept high growth stocks that are bleeding cash.

They’ve experienced the wonder that is high growth AND high profitability. And so the appeal of fast growers losing billions of dollars is fading.

Short-term, Figma could rebound. But to become a reasonably-priced company, it either needs to keep growing at 35%+ a year for another 5 years, or come down in price even further.

From Software to Hard Assets

One other factor is playing a role in the SaaS meltdown. And that is the remarkable commodity boom that’s just begun.

Gold and silver are leading the way, as they typically do. But now copper and nickel are also on fire, and our friend Jim Rickards believes this is just the beginning.

Some investors are rotating from speculative tech names like Figma and into hard assets. They’re moving out of the cloud, and down into the earth where real tangible assets lie.

And now the Trump administration has thrown their support behind U.S. companies mining critical minerals.

Market Rundown for Friday, January 23, 2026

S&P 500 futures are down a fraction to 6,940.

Oil’s up 1.85% to $60.45 for a barrel of WTI.

The price of gold is up 0.55% to $4,940 per ounce.

But Bitcoin is down 0.30% to $89,200.

Calling B.S. on Hassett

Calling B.S. on Hassett

Posted May 29, 2026

By Matt Insley

Making Hormuz the headline answer to inflation lets Washington completely off the hook for everything else.
Bullion Shops Are Buzzing

Bullion Shops Are Buzzing

Posted May 27, 2026

By Matt Insley

In today’s special guest essay, Adam Sharp takes readers inside a local bullion shop at the center of America’s silver mania.
The Backbone of American Power

The Backbone of American Power

Posted May 25, 2026

By Matt Insley

Behind every decorated commander, every seasoned officer and every military story that survives the passage of time… there are names that don’t make it into the headlines.
The Reagans’ Secret Advisor

The Reagans’ Secret Advisor

Posted May 22, 2026

By Mason Sexton

Mason traces a hidden thread running from ancient rulers… to the White House.
Massie’s MAGA Test

Massie’s MAGA Test

Posted May 20, 2026

By Matt Insley

Tuesday’s Kentucky primary became something bigger than a House race in a safely Republican district.
DoorDash and Deadly Sins

DoorDash and Deadly Sins

Posted May 18, 2026

By Matt Insley

Silicon Valley preaches the gospel of frictionless living… But at what cost?