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ServiceNow has fallen over 60% from its all-time highs, with other SaaS stocks also experiencing significant declines due to concerns about AI agents disrupting their business models. Adam Khoo highlights that recent earnings reported yesterday by ServiceNow countered these fears, suggesting that the company's core business remains resilient in the face of rising competition from AI solutions such as Claude Cowork.
The market reaction underscores ongoing debate about long-term impacts of AI on the SaaS sector.
Khoo previously highlighted double-digit losses in technology and financial stocks as the S&P 500 fell 9% year-to-date, noting some areas were undervalued in his earlier analysis. He has also advised against the use of leverage in stock purchases, outlining this guidance in a post to his daughter. These comments provide context for his ongoing focus on risk management and sector performance.