NOW, TEAM, DUOL Stocks Hit 52-Week Lows: What's Driving The Selloff? ServiceNow, Atlassian, and Duolingo stocks plummeted to multi-year lows on Wednesday, despite a broader market rebound fueled by a de-escalation in the Middle East conflict. The selloff reflects growing investor concerns that artificial intelligence could disrupt niche software sales, prompting a shift away from Software-as-a-Service (SaaS) stocks toward defensive sectors like consumer staples, energy, and utilities. ServiceNow shares fell 3.1% to $97.47, their lowest level since May 2023, marking a 60% decline from their April 2025 peak. The stock’s decline aligns with a broader rotation out of SaaS stocks, as investors worry that AI tools may erode demand for specialized software solutions. Analysts cited weak quarterly performance, with BTIG and Stifel lowering their price targets for ServiceNow to $185 and $135, respectively. CNBC’s Jim Cramer criticized the sell-off, calling it “merciless” for companies like ServiceNow and Salesforce. However, some analysts argue that the selloff may be overdone, pointing to the companies’ potential to capitalize on AI-driven monetization opportunities. Atlassian shares dropped 2% to $63.62, their lowest level since July 2018. The company’s stock has been under pressure following a 10% workforce reduction announced last month, part of a reorganization aimed at prioritizing AI development and enterprise sales. Multiple analysts have cut their price targets for Atlassian, reflecting skepticism about its ability to adapt to the AI-driven market. Meanwhile, Duolingo’s shares fell 5.4% to $91.06, their lowest point since March 2023. The stock is down 82% from its May 2025 peak, with Argus downgrading the company to “Hold” from “Buy.#middle_east_conflict #atlassian #service_now #duolingo #ai_monetization
