ServiceNow and Salesforce shares now look like buys, as ‘Armageddon’ fears are too extreme, analyst says

A Guggenheim analyst initiated coverage of ServiceNow and Salesforce with buy ratings, stating that current valuations do not reflect the companies' underlying business strength. The analyst acknowledged that artificial intelligence presents a real competitive threat to software vendors but said market concerns about the sector have become overdone. Both stocks have declined significantly as investors worried about how AI capabilities could disrupt traditional software business models. The analyst did not provide a specific timeframe for when valuations might recover.

Next story