ServiceNow Inc (NYSE:NOW) shares are up about 3% on Tuesday as traders continue to react to fresh AI-related product momentum and a more constructive analyst tone.
The iShares Expanded Tech-Software Sector ETF (BATS: IGV) is down 10.5% year to date while the S&P 500 is up 10.8% and the Technology Select Sector SPDR is up 26%. That gap reflects the market pricing software as if the AI thesis has turned against it. Own IGV and you are betting the "SaaSpocalypse" narrative, that... AI Crushed Software Stocks. IGV Is Betting the 'SaaSpocalypse' Is Overblown
Many investors view AI as a major growth opportunity for ServiceNow. However, if future AI systems automate more business processes independently, companies may need fewer traditional workflows.
ServiceNow is demonstrating outstanding performance and expects that to continue in the near term. The market has been worried that agentic AI could negatively impact its opportunities.
The Dow just closed out its best first half since 2021, up 8.7% year-to-date, yet Wednesday's open felt like a nervous glance at the door. CNBC's Dominic Chu kicked off July with mixed earnings, one big M&A shrug, and a jobs report that gave the bulls something to chew on. Chu flagged the labor data.... The Dow Just Had Its Best First Half Since 2021, but This Jobs Number Is Flashing Yellow