Tech investor Orlando Bravo says most software companies dont have enough profit

▤ Summary

Orlando Bravo argues that many publicly traded software companies lack sufficient profits and that the sector looks oversold because firms often trade on revenue multiples. He says AI is accelerating code generation but cannot replace most R&D work, making domain expertise increasingly valuable. Thoma Bravo, with about $181 billion under management, is actively looking for undervalued public software companies with deep domain knowledge and has recently acquired Dayforce and Jeppesen ForeFlight. Bravo reports that portfolio companies with strong domain expertise have seen the largest AI-driven returns on investment.

▦ Linked Companies