ServiceNow Shares Fall as UBS Warns of AI and Budget Pressure on SaaS Stocks
Apr 10, 2026
ServiceNow shares fell sharply this week as investors sold off software stocks on fears that AI tools could weaken demand for traditional software services. The broader decline has already wiped out hundreds of billions of dollars in software market value this year, with companies such as Salesforce, Cloudflare, and Snowflake also hit.
The pressure on ServiceNow increased after UBS analyst Karl Keirstead cut the stock to "neutral" from a more positive rating and lowered his price target to $100. He said enterprise spending may shift more toward AI-related projects and away from traditional software categories, and warned that the rise of managed AI agents and coding tools could create additional downside for software incumbents. ServiceNow has fallen more than 30% year to date.
Why did ServiceNow stock drop this week?
The stock fell because investors are worried that AI could reduce demand for traditional software, and UBS also downgraded the shares.
What did UBS change about ServiceNow?
UBS downgraded ServiceNow to neutral and cut its price target to $100.
Is this only affecting ServiceNow?
No. The sell-off has hit other software companies too, including Salesforce, Cloudflare, and Snowflake.
What is the main concern behind the sell-off?
The main concern is that companies may spend more on AI projects and less on older software products and services.
Sources
SaaS Stock Meltdown: ServiceNow, Salesforce, Cloudflare, Snowflake Hit Hard
Benzinga
Benzinga
Thursday's moves extended a sell‑off that has already erased hundreds of billions in software market cap this year.
The "SaaSpocalypse" Made ServiceNow Stock a Bargain. This Agentic AI Growth Stoc...
The Motley Fool
The Motley Fool
Fears that AI could make software-as-a-service companies obsolete led to a sell-off in the sector. One industry player -- ServiceNow -- has seen its share price plummet more than 30% year to date.
UBS Cuts ServiceNow to Neutral With a $100 Target: Yesterday's Selloff Was Just...
24/7 Wall Street
24/7 Wall Street
ServiceNow (NYSE:NOW | NOW Price Prediction) stock dropped 7.86% on Thursday, April 9, and continued lower Friday morning as a broader software sector selloff accelerated on fears that managed AI agents could disrupt enterprise software incumbents.
AI disruption fears may be overblown, but not for ServiceNow stock
Invezz
Invezz
ServiceNow (NYSE: NOW) plunged 6% on April 10 after senior UBS analyst Karl Keirstead issued a bearish note on the Santa Clara-headquartered software giant. Citing a material shift in enterprise spending priorities, Keirstead downgraded NOW this morning to “neutral” and slashed his price target shar...
UBS Downgrades ServiceNow On AI Model Threat, Budget Pressure
Investors Business Daily
Investors Business Daily
ServiceNow stock fell amid a downgrade from UBS on views that the emergence of AI coding tools poses a threat to the software maker.
ServiceNow Stock Is Taking A Tumble: What's Happening?
Benzinga
Benzinga
Keirstead warned that the stock could face additional downside as companies shift more of their IT budgets toward AI‑related projects and away from traditional software categories, CNBC reported.
Cloudflare leads software sell-off as AI fears weigh on sector
Proactive Investors
Proactive Investors
Software stocks traded lower on Friday amid mounting investor concerns about how rapidly advancing artificial intelligence (AI) could reshape the sector's long-term earnings outlook, extending a broader AI-driven slump. The latest pressure followed renewed attention on updates from AI company Anthro...
ServiceNow faces more cautious outlook as UBS cites AI-driven budget pressures
Proactive Investors
Proactive Investors
UBS has lowered its rating on ServiceNow Inc (NYSE:NOW, XETRA:4S0) to Neutral from Buy, saying its earlier conviction that the company was best positioned among application software firms in the AI era has weakened amid emerging signs of budget pressure in non-AI software spending. The bank noted th...
Stock Of The Day: Is This The Bottom For ServiceNow?
Benzinga
Benzinga
ServiceNow, Inc. (NYSE: NOW) has been trending lower over the past year, and Friday, April 10, is no different. But the downtrend could end here.
ServiceNow Stock Craters 19% In Week's Worst S&P 500 Showing
Benzinga
Benzinga
The slide marks NOW's steepest weekly drop since 2016 and represents a sharp reversal for a stock that investors had treated as a high‑quality way to play digital transformation and enterprise AI.
Why ServiceNow Stock Is Plunging Today
The Motley Fool
The Motley Fool
UBS reduced its price target on ServiceNow stock. ServiceNow projects growth on two important metrics in 2026, suggesting that investors shouldn't rush to click the sell button.
Anthropic's Just Triggered Another SaaS Sell-Off: Are Software Stocks Uninvestab...
24/7 Wall Street
24/7 Wall Street
Investors have watched AI reshape one industry after another.
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