New York, Feb 4, 2026, 17:38 EST — After-hours
- ServiceNow shares ended the day 1.18% higher at $111.07, after moving within a range of $105.25 to $111.15 during the session.
- The stock’s recent swings follow a fierce selloff in the sector this week, as investors weigh if emerging AI tools might disrupt subscription software models.
- Amazon will release its earnings on Thursday, Feb. 5. Some traders see this as a key indicator for risk appetite in tech and cloud sectors.
ServiceNow shares climbed on Wednesday, finishing 1.18% higher at $111.07, gaining some ground after a tough stretch for enterprise software stocks.
The timing is crucial as the software selloff has morphed into a wider debate over whether artificial intelligence poses a headwind rather than a tailwind for some industry sectors. A Reuters analysis highlighted the S&P 500 software and services index has fallen nearly 13% across five consecutive sessions, prompting investors to scramble and adjust valuations amid AI-driven uncertainty clouding business outlooks.
ServiceNow is right in the thick of this debate. It offers software-as-a-service, or SaaS — subscription-based tools delivered online — and these stocks often hinge on confidence in consistent renewals and pricing power.
The stock swung between a low of $105.25 and closed close to its peak for the day. Trading volume hit roughly 36.5 million shares, per daily market data.
The previous day, ServiceNow dropped 6.97% to $109.77 amid a wider selloff in software stocks, as investors digested renewed concerns over AI-driven disruption.
“We’re seeing many software firms viewed as vulnerable to disruption once artificial intelligence really takes off,” said Art Hogan, chief market strategist at B. Riley Wealth, on Tuesday. Shares of software names like Salesforce and Adobe dropped significantly. Reuters
Some investors pinned the latest jitters on a fresh update from AI developer Anthropic. “Sometimes the market just shoots first and asks questions later,” said Mike Archibald, a portfolio manager at AGF Investments, citing worries about new plug-ins linked to Anthropic’s Claude tools. Schroders analyst Jonathan McMullan described the sell-off as a sign of a “deepening structural debate” over how AI might disrupt traditional software pricing. Reuters
By Wednesday, selling pressure lingered across the sector, though debate turned to whether the sell-off had gone too far. “We are not yet at the point where AI agents will destroy software companies,” said Ben Barringer, head of technology research at Quilter Cheviot, pointing to challenges like security and data ownership. JPMorgan analyst Toby Ogg added that investor willingness to jump in remained “generally low.” Reuters
At a conference in San Francisco, Nvidia CEO Jensen Huang dismissed the notion that AI will replace software tools, labeling the idea “illogical.” His remarks quickly made rounds across the markets. Reuters
ServiceNow’s results last week failed to halt the decline. Despite forecasting fiscal 2026 subscription revenue above expectations and unveiling a new $5 billion share repurchase authorization, the stock dipped in after-hours trading. Some investors zeroed in on concerns around deals and integration.
The downside is clear: if clients start creating more in-house tools or resist per-user pricing as AI automates routine tasks, SaaS growth could become suddenly unpredictable. Given the sector’s volatility, even a small sign of slower deal cycles might send stocks tumbling once more.
Traders are set to focus on Amazon’s earnings report due Thursday, Feb. 5. Investors hope for clues on cloud demand and tech budgets, factors that could shape software sector sentiment before the next U.S. trading day.
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