The latest AI disruption trade, dubbed “consumer inertia,” is based on the idea that agents like Muse could hurt businesses that benefit when consumers don’t bother canceling subscriptions, comparing prices or shopping around for better deals. Putting Muse to work on these kinds of tasks and requesting next steps, or even canceling subscriptions with user approval, is some of what it can do.
The dread echoes the “SaaSpocalypse” earlier this year, when Wall Street dumped enterprise software stocks on fears that AI would disrupt their per-seat pricing models or replace them by giving companies the tools to custom-create the software tools they currently pay for.
“I’m skeptical about dumping entire groups based on this idea that agentic AI means the death of consumer inertia and companies that benefit from it,” Cramer said. “Right now, it feels like some proverbial babies are being thrown out with the bathwater, and that often makes for good buying opportunities.”
Those opportunities, however, can be tough to see when the selling is so broad. Since Muse launched on Sept. 8, gym chain Planet Fitness has fallen 20%, travel stocks Airbnb and Booking Holdings are down 13% and 16%, respectively, while SiriusXM has dropped about 11% and brokerage Charles Schwab slipped 9%.
Much like the SaaSpocalypse pain in enterprise software, which was awful, the market did come around to the idea that Cramer had espoused at the time — that enterprise software tools and AI can co-exist and even make each other better. Names with track records of success, such as Salesforce — which Cramer stuck with for the CNBC Investing Club portfolio — came roaring back.
There is no way to tell with certainty whether the consumer-inertia trade is going to be the new normal or if it will abate as the SaaSpocalypse did. In the meantime, Cramer does recognize that Muse is having an impact. However, he argued that investors should determine how vulnerable each business actually is rather than treating entire industries as AI losers. “Just don’t try to paint with a broad brush,” he stressed.
Take gyms. Cramer pointed to Life Time, arguing that its upscale, highly engaged members are less likely to cancel their subscriptions. Shares are down 7% since Muse launched. That could help explain why lower-cost Planet Fitness, where members may be less engaged, has fallen much more sharply.
Cramer also questioned the sell-off in travel stocks. Online travel agencies still offer benefits such as rewards programs, and Expedia has announced a partnership with Muse. While Muse could theoretically help travelers bypass Airbnb and book directly with property owners, Cramer said the platform’s value comes from letting users easily compare rentals in one place. “Airbnb’s sold off dramatically in the last month, to the point where I think the stock’s a steal,” Cramer said.
He is similarly skeptical that Muse will cause consumers to constantly move money between banks in search of slightly better yields. While the technology could make it easier to compare rates and transfer funds, Cramer argued many customers stay with their banks because they trust them.
“I don’t think [Muse] will destroy entire industries, but there are plenty of companies that could be vulnerable here,” Cramer said, pointing to SiriusXM, which he said has been in secular decline for years, way before agentic AI was even a thing.
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