{"id":270395,"date":"2026-01-29T16:17:08","date_gmt":"2026-01-29T16:17:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/270395\/"},"modified":"2026-01-29T16:17:08","modified_gmt":"2026-01-29T16:17:08","slug":"us-software-stocks-slide-after-sap-servicenow-results-fuel-ai-disruption-fears","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/270395\/","title":{"rendered":"US software stocks slide after SAP, ServiceNow results fuel AI disruption fears"},"content":{"rendered":"\n

(Reuters) – US software stocks fell on Thursday after SAP’s (SAP<\/a>) cautious cloud outlook and a post-earnings drop in ServiceNow (NOW<\/a>) \u200bshares reinforced investor concerns about mounting competition from artificial intelligence-related \u200ccompanies.<\/p>\n

ServiceNow dropped over 12% despite forecasting annual subscription revenue above Wall Street estimates. Germany’s SAP \u200cplunged almost 17% as analysts flagged that its cloud backlog and 2026 revenue forecast fell short of projections.<\/p>\n

“The malaise in software sentiment persists, coupled with a seemingly paradoxical and vicious cycle of depressed valuations, with maintained, \u2060if not rising, investor \u200cexpectations,” J.P.Morgan analysts said in a note.<\/p>\n

The double-whammy dragged Salesforce (CRM<\/a>) shares down over 8%, while Photoshop maker Adobe (ADBE<\/a>) and \u200dcloud security firm Datadog (DDOG<\/a>) fell more than 4% and 7%, respectively. The stocks were among the biggest decliners on the Nasdaq (^IXIC<\/a>).<\/p>\n

“All these software names are performing terribly because the market’s \u200bkind of in our view pricing a worst case scenario that \u200csoftware is dead because AI is disrupting the space,” said Adam Turnquist, chief technical strategist for LPL Financial.<\/p>\n

Software stocks have fallen in recent weeks as investors reassessed how much of the AI boom will translate into near-term revenue and pricing power for traditional enterprise software versus \u2060infrastructure players such as data centers \u200band chip companies.<\/p>\n

Investors also kept an eye on Microsoft<\/a> (MSFT<\/a>), which said that it had spent a record amount on AI in \u2060the last quarter and posted slower cloud-computing growth. Shares of the tech giant \u200cslid over 11%.<\/p>\n

(Reporting by Shashwat Chauhan in Bengaluru, Additional reporting by \u200cTwesha Dikshit; Editing by Shilpi Majumdar)<\/p>\n","protected":false},"excerpt":{"rendered":"(Reuters) – US software stocks fell on Thursday after SAP’s (SAP) cautious cloud outlook and a post-earnings drop…\n","protected":false},"author":2,"featured_media":270396,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,11627,61,132490,60,92772,128283,80],"class_list":["post-270395","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-cloud-security","tag-ie","tag-investor-expectations","tag-ireland","tag-software-names","tag-software-stocks","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/270395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=270395"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/270395\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/270396"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=270395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=270395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=270395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}