SAP falls as ServiceNow outlook rekindles AI disruption debate in software
SAP•SAP shares fell 3% in early trading as ServiceNow and Fortinet results prompted concerns about their fourth-quarter outlooks and renewed debate about AI disruption in software. ServiceNow shares fell 14.4% in extended trading.
1. Software shares slide
SAP shares fell 3% in early trading, with analysts pointing to read-across from results by ServiceNow and Fortinet. Berenberg analyst Nay Soe Naing said both companies beat and raised expectations, but their fourth-quarter guidance was seen as “very underwhelming.”
2. AI disruption debate
ServiceNow shares fell 14.4% to $129.25 in extended trading. Metzler analyst Oliver Frey said ServiceNow’s results again sparked debate about AI disruption in software and that application software vendors should have “a rough day” ahead. Nemetschek and TeamViewer shares were down 2% to 3%.
