U.S. software stocks slide as IBM, ServiceNow results do little to allay AI disruption fears
U.S. software stocks experienced a decline in premarket trading after IBM and ServiceNow reported quarterly results that failed to alleviate investor concerns about AI-driven disruption in the sector. Despite both companies exceeding revenue and profit expectations, IBM's software business showed slower growth and ServiceNow faced subscription revenue delays, prompting analysts to note that companies need to prove AI can support products, workflows, and returns. This downturn in software stocks contrasts with a surge in analog chip manufacturers, highlighting the divergent fortunes within the tech industry amidst the AI boom.
https://www.theglobeandmail.com/investing/article-us-software-stocks-slide-as-ibm-servicenow-results-do-little-to-allay/