Group 1 - The core viewpoint is that artificial intelligence will impact existing software, data, and professional services companies, but it will not completely destroy them. Investors seem to share this perspective, as indicated by a Breakingviews analysis comparing valuation drops with recent analyst forecasts [1] - The BVP Nasdaq Emerging Cloud Index, a benchmark for software stocks, has declined by 20% year-to-date, raising concerns that AI chatbots like Claude from Anthropic could serve as flexible alternatives to existing company products [1] - Companies such as RELX and Thomson Reuters have seen their stock prices drop by approximately one-third since the end of 2025 due to this panic [1] Group 2 - ServiceNow's enterprise value is estimated at $105 billion, with free cash flow projected to grow from $5.8 billion this year to $10.3 billion by 2029. The implied value of recent cash flows, discounted at a 10% rate, is $27 billion [4] - After subtracting this amount from the enterprise value, ServiceNow's business value from 2030 onwards is approximately $78 billion, which translates to $114 billion in 2030 dollars using a 10% discount rate [5] - The long-term growth rate required to achieve this figure is only 0.9%, significantly lower than the previous year's growth rate of 5.7% [5] Group 3 - A study of 76 stocks, including BVP index components and some European software companies, shows a median long-term growth rate of 0.9%. About 60% of these companies are expected to grow from 2030, but only one-third will exceed a growth rate of 2% [6] - Companies like Monday.com, RingCentral, and Wix.com are exceptions that reflect expectations of significant declines in free cash flow starting in 2030 [6] Group 4 - Analysts caution that the analysis may be overly simplistic, as sell-side brokers might not have adjusted their forecasts for 2029, and a uniform 10% discount rate may not be appropriate across different industries [8] - The analysis suggests that AI is more likely to "zombify" existing companies rather than quickly eliminate them, raising questions about how CEOs should respond to this reality [8] - Stocks like SAP are trading close to what is termed "liquidation value," indicating a scenario where management accepts decline and cuts all growth-related spending to maximize cash extraction [8] Group 5 - Currently, no major data or software companies are pursuing a liquidation strategy, as many, like ServiceNow, continue to show strong growth. However, the market signals that many companies may soon stagnate or even face rapid decline [9] - If investors are pricing these companies as if they are zombie firms, it raises concerns about whether these companies will operate in a manner similar to actual zombie enterprises [9]

Core Insights - The individual has extensive experience in investment research, having worked in various roles across different investment firms in Toronto for nearly a decade [1] - The journey began in sell-side research at a Canadian bank, followed by positions in a hedge fund, a family office, and wealth management [1] - Achieving CFA and CAIA designations by the age of 25 was a significant milestone in the individual's career [1] Lifestyle Changes - The individual has transitioned to living in a yurt in the boreal forest, approximately 100 kilometers from the nearest paved road or grocery store [1] - This lifestyle change includes living close to nature, with access to a lake for fishing and a creek for water [1] - The individual expresses a sense of freedom and gratitude for life, reflecting on personal growth and self-discovery [1]

【导读】平淡的夜晚，道指再创新高 大家好，今晚的消息面上略微平淡，我们简单看一下海外市场的表现。 2月10日晚间，美股三大指数震荡上涨，道指涨幅在200点到300点之间，再创历史新高，纳指跟标普指数微涨。 高盛、美国运通等金融股延续涨势。道指盘中第三次连续刷新历史纪录；而在上周，道指首次突破50000点大关。 大盘的支撑主要来自软件板块上涨：Datadog和ServiceNow分别反弹约14%和4%，Unity股价也上涨5%。 消息面上，Datadog业绩超预期，2025财年收入为34.3亿美元，同比增长28%；运营现金流达10.5亿美元，自由现金流达9.15亿美元。2025财年第 四季度收入同比增长29%，达到9.53亿美元；其中大型客户增长强劲，ARR超过100万美元客户达到603家，较上年同期的462家增长31%；推出了 Bits AI SRE Agent、存储管理、功能标志和数据可观测性产品，实现全面可用性。 AI应用软件股大涨，相关指数ETF大涨超2%。高盛集团CEO大卫·所罗门认为，上周因担心人工智能竞争而导致的软件股大跌，可能被市场反应 过度。 所罗门表示："我觉得过去一周的叙事有点过于泛化了。 ...

ServiceNow, Inc. (NYSE:NOW) is one of the software stocks that Jim Cramer named as potential undervalued buys. Cramer highlighted the company’s expected earnings growth during the episode, as he said: ServiceNow, which we had on the show last week, is also starting to look good, down over 50% from its high. They’re expected to grow earnings by 19% this year. And though you’d have to still pay a slight premium with the stock selling for nearly 24 times this year’s numbers, that’s down from nearly 70 times ...

Company Overview - ServiceNow (NOW) has experienced a significant downtrend due to a correction in the software landscape, primarily influenced by potential disruptions from large language models (LLMs) [1] Analyst Insights - The analysis focuses on the technology sector, particularly companies involved in AI infrastructure, cloud computing, and digital transformation [2] - The investment approach emphasizes understanding business fundamentals and future growth trajectories to identify companies with intrinsic values exceeding their current market values [2] Market Context - The software industry is currently facing challenges, with ServiceNow being impacted by broader market corrections related to technological advancements and disruptions [1]

Shares of Microsoft and ServiceNow are trading at attractive prices after the steep sell-off in software stocks.The S&P North American Technology Software Index, which tracks 111 software stocks, has fallen 30% from the all-time high it hit in September. The puts the index in bear market territory, and artificial intelligence (AI) is the root cause.Specifically, investors worry AI tools will reduce demand for existing products. The selling started months ago, but accelerated when Anthropic released Cowork i ...

For Immediate ReleaseChicago, IL – February 10, 2026 – Today, Zacks Investment Ideas feature highlights iShares Expanded Tech-Software Sector ETF (IGV) , AppLovin (APP) , Palantir Technologies (PLTR) , Salesforce (CRM) , ServiceNow (NOW) and Robinhood Markets (HOOD) .5 Top Software Stocks Investors Can Buy NowSoftware stocks, long viewed as some of the market’s most attractive business models, have been hit hard in recent months as investor concerns around artificial intelligence and large language models i ...

Summary of the Conference Call on Software Industry and AI Impact Industry Overview - The conference call focused on the Software industry in North America, particularly the impact of Generative AI (GenAI) on enterprise software capabilities and market dynamics [1][6]. Key Insights 1. **Impact of GenAI on Software**: - GenAI is expanding the capabilities of enterprise software, creating both opportunities and risks for investors [1][8]. - The potential for GenAI to automate a significant portion of unstructured data work (over 80% of organizational data) could add approximately $400 billion to the Enterprise Software Total Addressable Market (TAM) by 2028 [3][8]. 2. **Market Valuation Trends**: - There has been a ~33% pullback in software multiples since October 2025, with current averages around 4.4X EV/Sales, similar to levels seen during previous periods of uncertainty (2014-2016) [8][39]. - The software industry is currently trading at multiples that are 40% below the trailing 5-year average, indicating potential undervaluation [63][68]. 3. **CIO Insights**: - In a recent CIO survey, AI/ML spending is expected to grow to 9.2% of overall public cloud spending within three years, reflecting strong interest in AI capabilities [12][32]. - CIOs have consistently ranked AI/ML as a top priority for IT budgets over the past nine quarters [10][12]. 4. **Competitive Landscape**: - Concerns exist regarding competition from DIY solutions, startups, and model providers, which may erode the market share of incumbent software vendors [17][20]. - However, incumbent vendors are expected to leverage their existing capabilities and customer relationships to adapt and thrive in the evolving landscape [21][24]. 5. **Business Model and Margin Risks**: - The shift towards automation may necessitate changes in pricing models, as traditional seat-based pricing could become less effective [22][24]. - Rising competition and increased infrastructure costs associated with GenAI could pressure margins for software vendors [24][25]. Notable Companies and Investment Opportunities - **Microsoft (MSFT)**: Positioned as a leader in the GenAI space, with a strong adoption rate of its AI tools among CIOs [55]. - **Intuit (INTU)**: Expected to continue its growth trajectory with strong product cycles and margin expansion [55]. - **Salesforce (CRM)**: Benefiting from significant growth in AI-related annual recurring revenue (ARR) [55]. - **ServiceNow (NOW)**: Anticipated to see improvements in free cash flow and margin expansion [55]. - **Atlassian (TEAM)**: Despite perceived risks, it is viewed as undervalued with strong growth potential [56]. - **Snowflake (SNOW)**: Expected to benefit from ongoing data modernization trends [58]. - **Palo Alto Networks (PANW)**: Positioned well in the cybersecurity space, benefiting from increased demand due to GenAI [60]. Conclusion - The software industry is at a pivotal moment, with GenAI presenting both challenges and opportunities. While current market valuations suggest potential for recovery, the ability of incumbents to adapt and innovate will be crucial in determining future success [1][8][39].

Dan Ives is here, star analyst of Wedbush. Um, I mentioned at the top of the program that you moved a couple of really beaten down names into your your AI20, that being Salesforce and and Service Now. Um, what do you make of what Jensen said amidst all of this skepticism about that space.>> I think the hearts and lungs of the AI revolution will be in software. Now, look, right now it's data center buildout, GPUs. I mean, you're still in the early days of this what what's going to be a 10-year buildout, but ...

Core Viewpoint - The software sector is expected to play a crucial role in the AI revolution, despite current skepticism surrounding certain companies like Salesforce and ServiceNow [2][4]. Company Analysis - Salesforce's current price-to-earnings (PE) ratio is approximately 15, while ServiceNow's forward PE is nearly 25, indicating a significant discrepancy in valuation [5][8]. - There is potential for 20-30% incremental revenue growth for both Salesforce and ServiceNow, which is not currently reflected in their valuations [6][8]. - Salesforce is viewed as particularly dislocated in terms of its market opportunity, suggesting it may be undervalued compared to its potential [8]. Market Sentiment - The sentiment around software companies is mixed, with some being perceived as structurally broken while others, like Salesforce and ServiceNow, are expected to recover as AI use cases develop [3][7]. - Conversations with numerous CTOs and IT managers indicate a strong belief in the ongoing relevance and potential of Salesforce and ServiceNow, despite current market pressures [9][10]. Competitive Landscape - Microsoft is seen as integral to the success of the AI revolution due to its deep integration in enterprise solutions, particularly through Azure [11]. - Concerns have been raised about Microsoft's capital expenditure and its ability to keep pace with competitors like Google and Amazon, which may impact its free cash flow in the near term [12][13].