4D·

Is Constellation Software now also falling victim to SaaS AI fears?

Despite strong quarterly figures and stable margins, the Constellation Software share has fallen $CSU (+1.3%) have fallen below important technical support levels.

Are these just general market movements - or are they now also affecting $CSU (+1.3%) concerns that AI could put classic B2B SaaS models under pressure similar to $ADBE (+1.02%) od. $CRM (+1.18%) ?

Are interesting buying opportunities opening up here?

What do you think?

9 Comments

Pope Donkey XXI@DonkeyInvestor

I think that's down to Markus Söder

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Tenbagger2024@Tenbagger2024

$CSU is the baby of CEO and founder Mark Leonard.
And Mark is not going to let this baby go under any time soon.
The business model is to buy up software companies and modernize and restructure them.
That is why I am sure that this will also succeed in the age of AI.

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Sahnehäubchen 🦋.@Savvy_investor_2000

Anyone who doesn't print "AI" in every second press release is unfortunately currently being punished.
$CSU is the prototype for Boring Excellence and unfortunately communicates in exactly the same way. This is probably falling on their feet right now.
In Q2, IRGA/TSS adjustments from some old TSS deals, purely from an accounting perspective, also destroyed the profit on paper, even though everything is running solidly in operational terms.
They are so deeply rooted in the processes of their B2B customers that no AI in the world can simply operate out these SAP-like software octopuses.

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Sahnehäubchen 🦋.@Savvy_investor_2000

@Savvy_investor_2000
...but I think the golden age of CSU with permanent ATHs and 20% growth per year is over. The favorable niches have more or less been collected.

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Sansebastian@Sansebastian

Has been on the WL for ages. But may still yield 10%

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Mischko@Mischko

I hope so! I've had it on my watchlist for a while now. At what price would you buy it?

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PointiM@PointiM

@Mischko I closed at € 2,595 😉 Wanted to finally remove it from the WL 🤪

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Mischko@Mischko

@PointiM Congratulations! I think you will have a lot of fun with the share over the next few years. Maybe I'll be joining you next week;)

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Chris@Multibagger

If it's just market movements, you can perhaps hope for an increase.
But if there are structural problems, if the business model is threatened by AI, it's a bottomless pit and things will gradually go downhill

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