Morgan Stanley Exec Warns of ‘SaaSpocalypse’ Hurting M&A

A Morgan Stanley executive warns that a “SaaSpocalypse,” characterized by a broad devaluation of enterprise software firms due to AI anxieties, is negatively impacting M&A activity. This downturn makes it harder for tech founders to exit as valuations plummet and sales prices need to be reevaluated, despite a general post-pandemic resurgence in the M&A ecosystem. Major SaaS stocks have seen significant drops, prompting a shift from “buy everything” to a more selective investment approach.