Who will save "software stocks"?

As shown in the figure, there is a very real disconnect between market concerns and the earnings reports of software and other AI-related stocks. Goldman Sachs trader Rich Privorotsky wrote: “From my experience as a trader, price-to-earnings ratios are the hardest metric to pin down. People focus on earnings... Over the long term, stock prices should follow earnings trends. But once price-to-earnings ratios become a topic of debate, it rarely stops. That’s the crux of the problem... The P/E ratios and terminal values in the software sector are coming under scrutiny. How can you refute the view that, within the next five years, AI won’t have a severe impact on some existing businesses?” However, it is difficult to overturn the negative narrative of “AI destroying SaaS,” which sets a rather high barrier of entry for investors who want to reinvest in these stocks. BNP Paribas believes: “Perceptions of AI seem to have changed completely, from a benevolent angel to a kiss of death.”