Anthropic · OpenAI · CNBC Technology
Software stocks plunge on ServiceNow, IBM results as AI fears escalate
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Software stocks plummeted on Thursday as disappointing results from ServiceNow and IBM added to fears that artificial intelligence tools and services will disrupt their businesses.
Key facts
- The iShares Expanded Tech-Software ETF (IGV), which generally tracks the sector, fell about 6% Thursday and is down about 19% this year
- Salesforce and Hubspot fell about 9% and 8% respectively
- Shares of ServiceNow sank about 18% Thursday, its worst day on record
- The company narrowly beat Wall Street's estimates Wednesday, but said that conflict in the Middle East created a "headwind" for quarterly subscription revenue
Summary
Shares of ServiceNow sank about 18% Thursday, its worst day on record. Salesforce and Hubspot fell about 9% and 8% respectively. The sector has been beaten down on concerns that AI tools from companies like Anthropic and OpenAI will displace the longstanding cloud subscription model.