ServiceNow and Salesforce Look Like Buys After Selloff, Analyst Says
Guggenheim says AI fear has pushed valuations too low for both software giants, creating a buying opportunity.
The market is pricing in the apocalypse for enterprise software, and one Wall Street analyst thinks that's dead wrong. A Guggenheim analyst is calling out what they see as extreme pessimism baked into ServiceNow and Salesforce shares, arguing that 'Armageddon' fears around AI disruption have gone way too far.
Yes, AI is a real threat to legacy software business models. Nobody's denying that. But there's a massive difference between 'this industry faces headwinds' and 'these two dominant platforms are going to zero.' Guggenheim is planting the flag firmly in that gap, saying current valuations are too depressed relative to the actual long-term earnings power of both companies.
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For traders, this is the classic fear-vs-fundamentals setup. When analysts at major firms start using words like 'Armageddon' to describe what's already priced in, that's a signal the panic selling may have done its job. ServiceNow and Salesforce aren't scrappy startups that AI can leapfrog overnight — they're deeply embedded in enterprise workflows with sticky, recurring revenue.
The tradeable angle here is straightforward: if you believe AI disruption is a multi-year transition rather than an immediate knockout punch, both stocks could offer significant upside from current levels. The Guggenheim call isn't asking you to ignore the AI risk — it's asking whether that risk is already more than fully priced in. That's a question worth sitting with before the next leg higher.
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