Enterprise Software Stocks Lead Market Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Source: seekingalpha
- Palantir Military Partnership: Palantir's Maven AI system has been officially designated as a program of record by the U.S. military, leading to a 5% stock price increase during midday trading, which underscores the company's strategic importance and enhanced market confidence in defense applications.
- AppLovin Market Transformation: AppLovin's shift from a mobile gaming ad network to a broad AI-driven performance marketing ecosystem has significantly expanded its total addressable market, with a corresponding 5% stock price rise, reflecting the successful transformation of its business model and future growth potential.
- monday.com Legal Challenges: monday.com saw a 1.3% stock increase, yet its value has plummeted nearly 50% year-to-date due to ongoing class action lawsuits and a reduction in its 2027 targets, highlighting challenges in market confidence and legal risks.
- Cybersecurity Stock Trends: Cybersecurity firms like CrowdStrike and Palo Alto Networks have also experienced gains, indicating a rising demand for AI-driven cybersecurity solutions, particularly ahead of the upcoming RSA Conference, which could serve as a catalyst for the industry.
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 99.410
Low
172.00
Averages
222.81
High
263.00
Current: 99.410
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ServiceNow Shares Rebound as Investors Regain Confidence
- Price Rebound: ServiceNow's stock surged 5.9% to $104.54 today, indicating a recovery in investor confidence after a 44% decline over the past six months, suggesting that the market views the shares as undervalued.
- Shifting Market Sentiment: Following the so-called 'SaaSpocalypse', investor fears regarding AI replacing core software have eased, particularly after Federal Reserve Chairman Jerome Powell indicated that the inflation outlook is manageable and that an interest rate hike may not be necessary, further fueling the stock's rise.
- Economic Environment Impact: Despite ongoing concerns about a prolonged war in Iran potentially exacerbating inflation risks and pressuring tech stocks, ServiceNow's rebound suggests that investors find the current price attractive, presenting a potential buying opportunity.
- Future Volatility Expectations: Although ServiceNow's stock may face more volatility in the short term, the rapid sell-off has allowed potential investors to acquire shares of this fast-growing, highly profitable tech company at a discount, reflecting confidence in its long-term growth potential.
See More
US Stocks Rise as Oil Prices Hit Three-Week High
- Market Gains: The S&P 500 Index rose by 0.58%, the Dow Jones Industrial Average increased by 0.91%, and the Nasdaq 100 Index climbed by 0.30%, reflecting a positive market sentiment amid expectations that the Fed may keep interest rates unchanged.
- Declining Bond Yields: The 10-year Treasury note yield fell by 10 basis points to 4.33%, driven by concerns that the ongoing war in the Middle East could lead to a fuel shortage, potentially hindering global economic growth and influencing the Fed's future rate decisions.
- Rising Oil Prices: Crude oil prices surged over 2% to a three-week high due to Iranian attacks on shipping, raising fears that the closure of the Strait of Hormuz could disrupt global oil and gas supplies, which may lead to significant price increases.
- Manufacturing Activity Decline: The Dallas Fed's manufacturing activity survey dropped by 0.4 to -0.2, falling short of the expected increase to 2.0, indicating signs of economic slowdown that could impact future investment decisions.
See More
Middle East Tensions Impact Global Markets
- Market Recovery: The S&P 500 Index rose by 0.42%, the Dow Jones Industrial Average increased by 0.64%, and the Nasdaq 100 Index gained 0.32%, indicating a short-term market rebound amid escalating tensions in the Middle East, as investor confidence in future economic growth shows signs of recovery.
- Declining Bond Yields: The 10-year T-note yield fell by 8 basis points to 4.35%, reflecting market concerns that the ongoing war in the Middle East may lead to fuel shortages, thereby suppressing inflation expectations and potentially keeping the Fed from raising interest rates in upcoming meetings.
- Rising Oil Prices: Crude oil prices surged over 1% to a three-week high due to Iranian attacks on shipping, with fears that the closure of the Strait of Hormuz could disrupt global oil supplies, potentially driving prices to exceed the 2008 record high.
- Energy Infrastructure Damage: The International Energy Agency reported that more than 40 energy sites across nine Middle Eastern countries have been severely damaged, which could prolong disruptions to global supply chains after the war ends, further impacting international market stability.
See More
Palantir's Market Performance with AI Platform
- Sustained Revenue Growth: Palantir Technologies has experienced accelerated revenue growth for 10 consecutive quarters, indicating strong demand for its AI platform among commercial customers, although its forward price-to-sales ratio of 47 suggests limited upside potential in the near term.
- UiPath's Transition: UiPath is transitioning from a pure robotic process automation (RPA) company to an agentic AI orchestration platform with its Maestro platform, which can manage both software bots and third-party AI agents, potentially saving customers money and enhancing market competitiveness.
- ServiceNow's AI Opportunity: As a leader in IT workflow and automation, ServiceNow has launched the AI Control Tower to enhance its AI agent orchestration capabilities, and its acquisitions of Armis and Veza will add crucial security components, positioning it for significant future growth.
- Attractive Valuations: While Palantir's valuation is high, UiPath and ServiceNow trade at forward price-to-sales ratios of 3 and 6.5 respectively, with ServiceNow growing revenue at a rate of 20%, highlighting their investment potential and attractiveness in the AI sector.
See More
Palantir's High Valuation vs. UiPath and ServiceNow's AI Potential
- Palantir's Growth Momentum: Palantir Technologies has experienced consistent revenue growth for 10 consecutive quarters, attracting numerous commercial clients to its AI platform; however, its forward price-to-sales ratio of 47 indicates a high valuation that may limit medium-term upside potential.
- UiPath's Transformation Opportunity: UiPath is transitioning from a pure robotic process automation (RPA) player to an agentic AI orchestration platform with its Maestro platform, which can manage both software bots and third-party AI agents, potentially saving customers money and driving annual recurring revenue (ARR) growth, although the company is still in the early stages of its AI agent opportunity.
- ServiceNow's AI Potential: As a leader in IT workflow and automation, ServiceNow recently launched AI Control Tower to serve as an AI agent orchestration layer, with acquisitions of Armis and Veza enhancing its security components, which could become a significant growth driver for the company.
- Market Valuation Comparison: While Palantir's valuation is considered excessive, UiPath's forward price-to-sales ratio is 3 and forward price-to-earnings ratio is 13, indicating its stock is attractive, whereas ServiceNow trades at a forward price-to-sales ratio below 6.5 and a forward price-to-earnings ratio under 24, with a revenue growth rate of 20%, making it more competitive in the market.
See More
Iran War's Impact on Markets and Oil Prices
- Market Shock from War: Since the outbreak of the Iran war on February 28, West Texas Intermediate (WTI) crude oil prices have surged by 48.67% to $99.64 per barrel, raising inflation concerns and exposing investors to a potential 20% market decline risk.
- Rising Treasury Yields: The 10-year and 30-year Treasury yields are climbing due to war-driven inflation expectations, impacting borrowing costs and exacerbating investor panic, particularly for long-term investors facing a challenging environment.
- Tech Sector Turmoil: Amid market volatility, tech stocks, especially the 'Magnificent Seven', have faced significant declines, with Intuit, Applovin, and Gartner dropping 37%, 43.4%, and 38% respectively, highlighting the sector's vulnerability to changing market sentiments and AI competition.
- Shift in Investor Sentiment: As uncertainty looms over the market's future, investors feel increasingly helpless, with many opting to exit, particularly in light of the potential for rising oil prices, leading to a substantial loss of confidence in equities.
See More
ServiceNow Shares Rebound as Investors Regain Confidence
- Price Rebound: ServiceNow's stock surged 5.9% to $104.54 today, indicating a recovery in investor confidence after a 44% decline over the past six months, suggesting that the market views the shares as undervalued.
- Shifting Market Sentiment: Following the so-called 'SaaSpocalypse', investor fears regarding AI replacing core software have eased, particularly after Federal Reserve Chairman Jerome Powell indicated that the inflation outlook is manageable and that an interest rate hike may not be necessary, further fueling the stock's rise.
- Economic Environment Impact: Despite ongoing concerns about a prolonged war in Iran potentially exacerbating inflation risks and pressuring tech stocks, ServiceNow's rebound suggests that investors find the current price attractive, presenting a potential buying opportunity.
- Future Volatility Expectations: Although ServiceNow's stock may face more volatility in the short term, the rapid sell-off has allowed potential investors to acquire shares of this fast-growing, highly profitable tech company at a discount, reflecting confidence in its long-term growth potential.
See More
US Stocks Rise as Oil Prices Hit Three-Week High
- Market Gains: The S&P 500 Index rose by 0.58%, the Dow Jones Industrial Average increased by 0.91%, and the Nasdaq 100 Index climbed by 0.30%, reflecting a positive market sentiment amid expectations that the Fed may keep interest rates unchanged.
- Declining Bond Yields: The 10-year Treasury note yield fell by 10 basis points to 4.33%, driven by concerns that the ongoing war in the Middle East could lead to a fuel shortage, potentially hindering global economic growth and influencing the Fed's future rate decisions.
- Rising Oil Prices: Crude oil prices surged over 2% to a three-week high due to Iranian attacks on shipping, raising fears that the closure of the Strait of Hormuz could disrupt global oil and gas supplies, which may lead to significant price increases.
- Manufacturing Activity Decline: The Dallas Fed's manufacturing activity survey dropped by 0.4 to -0.2, falling short of the expected increase to 2.0, indicating signs of economic slowdown that could impact future investment decisions.
See More
Middle East Tensions Impact Global Markets
- Market Recovery: The S&P 500 Index rose by 0.42%, the Dow Jones Industrial Average increased by 0.64%, and the Nasdaq 100 Index gained 0.32%, indicating a short-term market rebound amid escalating tensions in the Middle East, as investor confidence in future economic growth shows signs of recovery.
- Declining Bond Yields: The 10-year T-note yield fell by 8 basis points to 4.35%, reflecting market concerns that the ongoing war in the Middle East may lead to fuel shortages, thereby suppressing inflation expectations and potentially keeping the Fed from raising interest rates in upcoming meetings.
- Rising Oil Prices: Crude oil prices surged over 1% to a three-week high due to Iranian attacks on shipping, with fears that the closure of the Strait of Hormuz could disrupt global oil supplies, potentially driving prices to exceed the 2008 record high.
- Energy Infrastructure Damage: The International Energy Agency reported that more than 40 energy sites across nine Middle Eastern countries have been severely damaged, which could prolong disruptions to global supply chains after the war ends, further impacting international market stability.
See More
Palantir's Market Performance with AI Platform
- Sustained Revenue Growth: Palantir Technologies has experienced accelerated revenue growth for 10 consecutive quarters, indicating strong demand for its AI platform among commercial customers, although its forward price-to-sales ratio of 47 suggests limited upside potential in the near term.
- UiPath's Transition: UiPath is transitioning from a pure robotic process automation (RPA) company to an agentic AI orchestration platform with its Maestro platform, which can manage both software bots and third-party AI agents, potentially saving customers money and enhancing market competitiveness.
- ServiceNow's AI Opportunity: As a leader in IT workflow and automation, ServiceNow has launched the AI Control Tower to enhance its AI agent orchestration capabilities, and its acquisitions of Armis and Veza will add crucial security components, positioning it for significant future growth.
- Attractive Valuations: While Palantir's valuation is high, UiPath and ServiceNow trade at forward price-to-sales ratios of 3 and 6.5 respectively, with ServiceNow growing revenue at a rate of 20%, highlighting their investment potential and attractiveness in the AI sector.
See More
Palantir's High Valuation vs. UiPath and ServiceNow's AI Potential
- Palantir's Growth Momentum: Palantir Technologies has experienced consistent revenue growth for 10 consecutive quarters, attracting numerous commercial clients to its AI platform; however, its forward price-to-sales ratio of 47 indicates a high valuation that may limit medium-term upside potential.
- UiPath's Transformation Opportunity: UiPath is transitioning from a pure robotic process automation (RPA) player to an agentic AI orchestration platform with its Maestro platform, which can manage both software bots and third-party AI agents, potentially saving customers money and driving annual recurring revenue (ARR) growth, although the company is still in the early stages of its AI agent opportunity.
- ServiceNow's AI Potential: As a leader in IT workflow and automation, ServiceNow recently launched AI Control Tower to serve as an AI agent orchestration layer, with acquisitions of Armis and Veza enhancing its security components, which could become a significant growth driver for the company.
- Market Valuation Comparison: While Palantir's valuation is considered excessive, UiPath's forward price-to-sales ratio is 3 and forward price-to-earnings ratio is 13, indicating its stock is attractive, whereas ServiceNow trades at a forward price-to-sales ratio below 6.5 and a forward price-to-earnings ratio under 24, with a revenue growth rate of 20%, making it more competitive in the market.
See More
Iran War's Impact on Markets and Oil Prices
- Market Shock from War: Since the outbreak of the Iran war on February 28, West Texas Intermediate (WTI) crude oil prices have surged by 48.67% to $99.64 per barrel, raising inflation concerns and exposing investors to a potential 20% market decline risk.
- Rising Treasury Yields: The 10-year and 30-year Treasury yields are climbing due to war-driven inflation expectations, impacting borrowing costs and exacerbating investor panic, particularly for long-term investors facing a challenging environment.
- Tech Sector Turmoil: Amid market volatility, tech stocks, especially the 'Magnificent Seven', have faced significant declines, with Intuit, Applovin, and Gartner dropping 37%, 43.4%, and 38% respectively, highlighting the sector's vulnerability to changing market sentiments and AI competition.
- Shift in Investor Sentiment: As uncertainty looms over the market's future, investors feel increasingly helpless, with many opting to exit, particularly in light of the potential for rising oil prices, leading to a substantial loss of confidence in equities.
See More
