In the wake of the SaaSpocalypse selloff four months ago, Salesforce, HubSpot, and Adobe have shown markedly different stock recoveries despite the broader software market rebounding over 40% from its April lows. The selloff erased roughly $285 billion in software market capitalization in just 48 hours, driven by fears that AI agents would render per-seat licensing models obsolete, hitting the IGV software index with a 52-week low on April 10, according to saastr.com.
The SaaSpocalypse stemmed from concerns that AI could replace the need for companies to purchase software licenses based on employee seats, undermining the revenue model of leading B2B software firms. While the overall software index has recovered significantly since April, Salesforce, HubSpot, and Adobe continued to slide to fresh 52-week lows. Each company faces unique challenges: Salesforce is now trading at 3.1 times ARR, HubSpot’s stock is down 56%, and Adobe trades at 11 times earnings, per saastr.com.
This divergence matters because these three firms represent major pillars of the B2B software market, each with different exposure to AI-related disruption. Salesforce is seen as potentially undervalued given its AI revenue, HubSpot is the fastest growing but remains cheap on revenue, and Adobe carries the most direct risk from the AI fears that triggered the selloff. Their performance highlights the uneven impact of AI on traditional SaaS licensing models and investor sentiment in the sector.
Salesforce’s valuation at 3.1 times ARR marks it as one of the cheapest large-cap software stocks in a decade, underscoring investor caution despite its AI integration. HubSpot and Adobe’s continued declines reflect ongoing concerns about their business models adapting to AI. The IGV software index’s rebound of over 40% since April 10 provides a benchmark for the sector’s recovery, with these three companies illustrating the varied paths within the SaaS market, according to saastr.com.