#Software stocks plummet
#Repositioning
The current SaaS (Software as a Service) sector has gradually retreated from the previously overvalued bubble phase to a relatively rational but highly differentiated range. Many companies are still significantly affected by Anthropic.
However, if you simply ask whether it has now become attractive, the answer is not a straightforward yes. Instead, it requires re-evaluating the entire sector using three core frameworks: EV/S (valuation), Revenue Growth, and Rule of 40 (quality).
First, EV/S (valuation) represents how much the market is willing to pay for each unit of revenue generated by a company, which is the most direct pricing indicator for evaluating SaaS businesses. From the current data, many companies have compressed their valuation multiples from the previous high levels of 15–30x down to a range of 3–10x. For instance, companies like Adobe and Salesforce are even trading at around 3x. On the surface, this may seem to suggest that they’ve become 'cheaper,' but the issue is that valuation alone cannot stand on its own because the market's pricing logic has changed—low EV/S no longer automatically equals an investment opportunity; it may instead reflect doubts about future growth or competitiveness.
Thus, the second key dimension is Revenue Growth. The core of the SaaS model has always relied on sustaining high growth to justify its valuation. If a company can still maintain a grow...

Key Takeaways
– CMS finalized a +2.48% payment update for 2027 Medicare Advantage (MA)—a sharp step up from the initial +0.09% draft, representing a clear, policy-driven upside surprise.
– Including risk adjustment-related effects, the effective revenue uplift is closer to ~+5%, offering near-term relief against margin compression.
– The rally this has sparked is best framed as valuation repair (multi...