ServiceNow still waiting for AI buying to pay off

ServiceNow's post-earnings stock selloff is prompting concern that public investors may be losing patience with software companies' AI spending and monetization efforts. The article suggests that weaker sentiment could freeze an already subdued software M&A market as large platforms reconsider AI dealmaking. The impact is broader for sector sentiment than for any single company, but it is unlikely to be a market-wide shock.

Analysis

ServiceNow's post-earnings stock selloff is prompting concern that public investors may be losing patience with software companies' AI spending and monetization efforts. The article suggests that weaker sentiment could freeze an already subdued software M&A market as large platforms reconsider AI dealmaking. The impact is broader for sector sentiment than for any single company, but it is unlikely to be a market-wide shock.