SAAS track is generally high growth. In our primary market, the revenue of many companies can maintain a doubling rate every year. Even large companies like SNOW can achieve a YoY growth of about 70% in 21 years when the macro is good. In the current adverse environment, I think that companies with a bottom growth rate of more than 25% are super awesome companies.
If you understand these three reasons, you can understand why SAAS has been like a dead mother in recent years, because the growth is not good and the valuation is killed, and the company's fundamentals are fine! This is a growth rate chart I made with Ychart before:
Then everyone's stock selection is very simple, choose whoever has faster growth, whoever has a lower NTM PS ratio relative to YoY Growth, and whoever has a good product and who has a bottom product.