US EditionAI Fears Keep Hammering Software Stocks—Even Those Reporting Good Earnings
ServiceNow fell 17% and IBM more than 9% as cautious outlooks revived fears that AI tools could erode software subscription revenue.
- ServiceNow and IBM stocks tumbled on Thursday after quarterly results failed to satisfy investors worried about AI disruption and Middle East instability threatening the software-as-a-service model.
- Dubbed the "SaaSpocalypse" on Wall Street, pessimism has accelerated as AI developers including Anthropic and OpenAI spark fears that artificial intelligence will replace the cloud subscription model.
- ServiceNow stock fell 18% and IBM dropped more than 9% on Thursday, dragging the Expanded Tech-Software Sector ETF down 6% as growth in the critical software segment cooled to 11.3%.
- Selling pressure spread to enterprise leaders including Salesforce, Atlassian, and Workday, which fell roughly 10%, reflecting broader skepticism as software companies face cooling growth and potential AI replacement threats.
- In contrast, semiconductor manufacturer Texas Instruments jumped 17% on Thursday, reflecting investor enthusiasm for AI-related hardware providers like Nvidia and AMD as software companies prepare earnings reports next week.
10 Articles
10 Articles
Solid Earnings From IBM and ServiceNow Fail to Quell Artificial Intelligence Concerns, Sending Software Stocks Lower. Here's What Investors Need to Know
Both IBM and ServiceNow recently reported earnings results ahead of consensus Wall Street estimates. Yet, their stocks are getting crushed.
AI Anxiety Returns: ServiceNow, IBM Earnings Drag Software Shares Down - IBM (NYSE:IBM), ServiceNow (NYSE
Enterprise software shares plummeted in Thursday’s premarket session. Traders reacted to quarterly reports from ServiceNow Inc. (NYSE:NOW) and International Business Machines Corp. (NYSE:IBM). Nasdaq futures are down 0.36% while S&P 500 futures have shed 0.39%. Despite both companies exceeding analyst estimates, cautious outlooks reignited concerns that artificial intelligence is structurally breaking the traditional software-as-a-service (SaaS)…
AI deepens US tech divide as IBM, ServiceNow spark software selloff, TI lifts chipmakers
April 23 (Reuters) - U.S. technology stocks diverged further on Thursday as results from IBM and ServiceNow rekindled fears of AI‑driven disruption in software, while an upbeat outlook from Texas Instruments lifted some chipmakers, underscoring a widening winner-loser divide.
IBM revenue rises despite concerns over AI
IBM’s revenue grew by 9% in the first quarter to $15.92 billion (€13.59 billion). Although this exceeded analysts’ expectations of $15.62 billion (€13.33 billion), it marked a slowdown compared with growth of 12.2% in the previous quarter. This weaker growth, particularly within IBM’s software segment, has stoked concerns about the potential impact of artificial intelligence [… The post IBM revenue rises despite concerns over AI appeared first o…
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