New York, Feb 10, 2026, 17:42 EST — After-hours
- ServiceNow jumped 2.5% to $106.48, part of a wider rebound for beaten-down software stocks.
- JPMorgan and Morgan Stanley flagged what they described as sentiment-driven selling, stemming from renewed concerns about AI disruption.
- After software stocks took a swift dive, traders are now eyeing whether the rally can stick through Wednesday.
ServiceNow, Inc. picked up 2.5% to close at $106.48 on Tuesday. After hours, the stock held steady, with Wall Street looking to halt the recent slide in U.S. software names. 1
ServiceNow’s stock has turned into something of a litmus test for the ongoing investor argument over artificial intelligence—does it help, or is it a risk? Over the last week, that debate has been driving price swings just as much as quarterly results.
JPMorgan strategists flagged what they called the “severity” of the recent software stock slide, suggesting it’s carved out chances in what they view as better names—even though they admit more weakness could still be ahead. “The market is pricing in worst-case AI disruption scenarios that are unlikely to materialize over the next three to six months,” wrote Dubravko Lakos-Bujas, who heads the bank’s team. Over at Morgan Stanley, Katy Huberty echoed the take, arguing the valuation gap looks “sentiment-driven, not fundamental.” 2
ServiceNow landed on JPMorgan’s list of “AI-resilient” software stocks, joining Microsoft, Palo Alto Networks, CrowdStrike, and Datadog, the note said. 3
It’s a choppy scene. Fresh anxieties over new AI tools—specifically, just how fast agents might seep into layers of the software stack—sent the S&P 500 software and services index tumbling, before it clawed back some ground later, according to Reuters.
ServiceNow’s shares moved right along with the tape. Tuesday’s regular session saw a gain, but the day’s choppy intraday range made it clear that jitters hadn’t gone anywhere.
Still, some are keeping their guard up. UBS cut its rating on the U.S. information technology sector to “Neutral,” flagging the chance that software and capital spending worries might crop up again, despite the sharp decline in valuations. 4
Here’s the risk: renewed talk of AI-driven shakeups, or any sign of corporate belt-tightening, could knock the legs out from under high-multiple software stocks in a hurry. Last week’s action was a reminder—positions can reverse course in no time.
Traders are eyeing ServiceNow to see if it stays above Monday’s finish; attention also turns to the broader software index and its chances of building on the rebound into Wednesday’s session.
Aside from what shows up on the tape, investors are eyeing ServiceNow’s upcoming customer events. The big one: its annual Knowledge conference, scheduled for May 5-7 in Las Vegas. That’s where fresh product news and shifts in strategy could move the mood. 5
