AI Eats SaaS?

This was originally intended to be a write-up on Zoom, as we believed the company held a strong strategic advantage in its core video communications franchise. Initially, we thought Zoom could leverage this position AI to expand its role within the enterprise. However, the lack of meaningful innovation to date, combined with increasing competitive pressure from Microsoft Teams, has led us to adopt a more neutral view. While we believe Zoom may experience modest growth going forward, we see the business as fundamentally growth-constrained, facing an expanding set of competitive threats and limited pricing power.