TMS Insights February 2026
The boys are back for the first TMS Insights of the year.
Jeremy and Ben break down the recent market wobble driven by renewed AI takeover fears, following new product announcements from Anthropic. The result has been a sharp selloff across software, which Ben argues has been largely indiscriminate. In his words, "the baby is being thrown out with the bathwater" when it comes to AI’s impact on quality software businesses.
With reporting season kicking off, the focus shifts to companies already flagging solid earnings momentum despite the noise. One name discussed is Xero, where the broader SaaS and AI selloff has pushed valuations to more attractive levels. The conversation also touches on other high quality platforms including Microsoft, Life360, Pro Medicus, SEEK, REA Group, and more.
The view from the desk is pretty simple. The software selloff looks "illogical", not fundamental, and it’s throwing up opportunities for long term investors willing to lean in. As Jeremy sums it up: "run into the fire, not away."
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