Clouded Judgement 7.21.23 - Are Software Companies Bad Businesses?

Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Are Software Companies Bad Businesses? There was some talk last week on the All-In podcast about software companies. Specifically Chamath said this: “From an OpEx perspective these businesses just suck. They don’t generate any free cash flow.” Quite the claim! Does the data support it? Below I’ll talk about why I disagree, but also why there are bits of truth to it.