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
SaaS Stock Meltdown: ServiceNow, Salesforce, Cloudflare Hit Hard The software-as-a-service sector faced a significant downturn as major players like Salesforce, Cloudflare, and Snowflake experienced steep declines, marking a broader sell-off that has eroded hundreds of billions in market value this year. The sell-off, which accelerated on Thursday, reflects growing investor concerns about the long-term viability of high-growth SaaS models amid shifting market dynamics and the potential impact of AI-driven disruption. Salesforce, a key bellwether for the enterprise SaaS space, saw its stock tumble further as traders speculated that the rise of AI copilots and horizontal agents could compress growth and pricing power across CRM and related industries. The company’s stock, already under pressure, faced renewed skepticism as investors questioned whether its traditional revenue streams could sustain in an environment where AI tools might reduce reliance on legacy software solutions. Similarly, Cloudflare and Snowflake, two of the most highly valued infrastructure and data companies, traded as high-beta proxies for AI-software sentiment. Both names slid as institutional investors reduced exposure to premium multiples, which are seen as particularly vulnerable to further declines in the so-called "SaaSpocalypse." Zscaler and ServiceNow, which had already been hit hard in prior sessions, extended their declines, signaling a broader systematic de-risking in the software sector. The sell-off appears to be driven by fears that the rapid adoption of AI technologies could fundamentally alter the competitive landscape, forcing companies to reinvent their business models or face declining margins.#cloudflare #service_now #salesforce #snowflake #zscaler
ServiceNow (NOW) Stock Plummets Amid Middle East Ceasefire Breach Fears Shares of enterprise workflow automation company ServiceNow (NYSE:NOW) dropped 6.7% in the morning session after reports of a ceasefire breach in the Middle East triggered heightened market volatility. The incident raised concerns that a fragile U.S.-Iran truce could collapse, sending shockwaves through global financial markets. Investors reacted swiftly to the news, with the stock’s sharp decline reflecting broader anxieties about geopolitical instability and its potential impact on corporate earnings. The market’s overreaction to geopolitical news has become a recurring theme, as traders often discount short-term risks despite long-term fundamentals. ServiceNow’s stock movement aligns with its historically volatile nature, which has seen 11 instances of more than 5% price swings over the past year. Today’s drop, however, appears to signal that the market views the Middle East tensions as a significant but not existential threat to the company’s operations. This latest decline follows a previous surge in the stock 10 days earlier, when shares rose 6.2% amid optimism that President Trump’s engagement in serious, productive talks with Iran could ease regional tensions. At the time, investors interpreted the news as a potential de-escalation of Middle Eastern conflicts, which had been a persistent source of uncertainty for global markets. The prospect of reduced geopolitical instability and lower energy costs had provided a temporary reprieve, while also fueling demand for high-quality SaaS stocks. The "SaaSpocalypse" correction, which dominated early 2026, had left many investors wary of the sector’s volatility.#middle_east #nyse #service_now #us_iran_truce #geopolitical_volatility
