ServiceNow's unexpected expense surge makes its rich valuation more vulnerable in a struggling software sector. Revenue rose 21%, but spending drove an EPS miss and one quarter of guided cRPO deceleration; wider market conditions could hurt near term. The 20% selloff looks excessive, and few software companies should benefit as much from AI. Management could deliver over 3-5 years, though the stock is only close to a buy again now; below $100 looks good for the long term. x.com  x.com  x.com  x.com 

Adobe, Salesforce and ServiceNow still generate massive cash flow, push deeper into AI and sit at the center of enterprise operations. Three of the biggest SaaS names remain beaten up in 2026; their valuations have been crushed, but the long-term opportunity may not have been. The market has swung way too far against them. x.com 

ServiceNow's growth looks likely to keep slowing, yet it trades at 50x 2027 GAAP EPS versus 20-25x for Microsoft, Google and Amazon growing as fast or faster. Subscription revenue grew about 21%, but the customer base is flat, so growth relies on upselling modules. Operating margin dipped and stock-based pay rose. Customers are mixed on its AI products and delay over price. Big SaaS firms near 20% growth often slide faster than expected, and its long-term targets look hard to reach. x.com  x.com 

These twelve stocks could dominate the next era by meeting infrastructure and consumer demand. TSMC makes AI chips; Palo Alto Networks secures cloud; GE Aerospace earns engine-service revenue; IREN builds AI cloud; Broadcom supplies chips and networking; Intuitive Surgical sells surgical robots. Strategy offers bitcoin exposure; e.l.f. Beauty serves Gen Z; Robinhood expands finance; The Trade Desk serves advertisers; Walmart adds ads and memberships; Vistra powers AI data centers. x.com  x.com  … Show more

e.l.f. Beauty, Celsius and SoFi should significantly outperform the market over the next 3-5 years because they are quietly improving fundamentally without depending on the AI boom. Deep into a bull market, opportunities can lie in companies not participating in the hype. x.com 

Software stocks are a costly place to wait because the whole sector stays hated until sentiment shifts, so ServiceNow, Zeta, Reddit, AppLovin and Rubrik are off-limits until then. Even names not really disrupted by AI, like Reddit, trade with the group's sentiment, and many are down YTD in the biggest rally in years. Holding through that carries a big opportunity cost; better to pay a 10% premium after sentiment turns. Reddit has the users and will not be replaced by AI, but now is not the time. … Show more

Software's relative strength and sound finances make institutional rotation from semis plausible. It could lead while semis consolidate, despite slow growth at some firms; the market rewards cash flow, healthy balance sheets and manageable debt. Salesforce, ServiceNow, Palantir, Shopify and Workday hold up; SAP's cloud and AI shift, Instacart's massive 10-month base, Veeva's massive five-year base and Atlassian's Stage 2 strength add to the case. Semis may still rally; the view can change. x.com  … Show more

Snowflake and Oracle join the software names that, at decade lows, can rise at least 2-3x before retirement. The dot-com toppers are the precedent: chip, interconnect, optics and memory names fell 90-95% after 2000 and still came back 1,000-2,000% over 26 years. They now sit beside ServiceNow, Atlassian, Salesforce, Microsoft, Figma, Workday and The Trade Desk, preferred over chasing AI names. @TheShortBear notes investors are capitulating into AI as cheaper stocks keep getting cheaper. x.com 

Software stocks face customers shifting budgets to AI infrastructure and cybersecurity while vendors spend more on tokens than planned. IBM said this last week and fell almost 30% in one day, and Pegasystems said the same this morning. That is good reason to be nervous holding ServiceNow into tonight's earnings, though it could surprise to the upside if it avoids the issue. Palantir is the only software name worth owning right now. x.com 

This is the year to buy SaaS stocks such as ServiceNow and Zeta Global, because entire sectors can become undervalued for a period, much as healthcare did last year. SaaS kept getting sold even as cooler-than-expected March CPI lifted futures, which is short-term noise against a long-term opportunity. Moments like this call for leaning in rather than overthinking. x.com  x.com