New York, Jan 30, 2026, 11:16 ET — Regular session
- Salesforce (CRM) held steady in early trading following Thursday’s sharp selloff in software stocks.
- Disappointing reports from SAP and ServiceNow stoked concerns that AI might dampen demand for subscription software.
- The Feb. 6 U.S. jobs report and next week’s megacap earnings will be key tests for risk appetite.
Salesforce shares barely moved on Friday, hovering near $214.09 after an opening price of $215.06. Early trading saw the stock fluctuate between $211.66 and $215.44.
This shift is significant since software stocks are behaving like a referendum on AI—not just if it boosts sales, but if it displaces parts of current customer spending. Salesforce finds itself caught in the middle, as investors wrestle with how quickly “AI agents” evolve from demos to revenue-generating products.
This comes amid a wave of earnings reports hitting U.S. markets, where a handful of disappointing numbers can quickly trigger widespread de-risking. Subscription software stocks usually take the first hit when sentiment shifts.
Thursday’s sell-off gained momentum after SAP issued a cautious cloud forecast and ServiceNow’s shares dropped post-earnings, fueling concerns that AI tools might disrupt the subscription-based SaaS model. SAP plunged over 16%, ServiceNow dropped 11%, Salesforce slid 7.1%, and the S&P 500 Software and Services Index fell 8.7%, hitting its lowest level in nine months. “The market is pricing a worst-case scenario that software is dead,” said Adam Turnquist, chief technical strategist at LPL Financial. 1
Microsoft slumped 10%, weighed down by cloud results that didn’t reassure investors jittery over heavy AI spending. “There are some genuine concerns that AI investments will eat the software companies’ lunches,” said John Praveen, managing director and co-CIO at Paleo Leon. 2
ServiceNow, a key player in the enterprise software sector, projects fiscal 2026 subscription revenue between $15.53 billion and $15.57 billion. The board also greenlit an additional $5 billion in buybacks, including a $2 billion accelerated repurchase. Valoir CEO Rebecca Wettemann noted the company is growing both “organically and by acquisition” as it ramps up AI partnerships. 3
But after such a sharp decline, there’s not much margin left for another letdown. If clients start delaying renewals, cutting back on seats, or pushing harder on prices as AI tools become cheaper and more accessible, the sell-off in Salesforce and other software stocks might stretch beyond a single day of panic.
Another risk is headline-chasing, where traders fixate on the latest cloud numbers rather than the underlying, longer sales cycle. This can drive sharp swings, even if the fundamentals barely change.
Next week will deliver earnings from Alphabet and Amazon, alongside the Feb. 6 U.S. jobs report—a mix that might shift rate forecasts and investor appetite for pricey software stocks. “The onus is going to be on them to deliver,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. 4
