PBUS, ORCL, LIN, NOW: Large Inflows Detected at ETF
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 08 2024
0mins
Should l Buy NOW?
Source: NASDAQ.COM
PBUS Share Performance: PBUS's share price is currently at $57.12, within a 52-week range of $40.87 to $57.51, indicating its position relative to historical performance.
ETFs Trading Dynamics: Exchange traded funds (ETFs) function like stocks but involve trading "units" that can be created or destroyed based on investor demand, affecting the underlying assets held by the ETFs.
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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: 103.290
Low
172.00
Averages
222.81
High
263.00
Current: 103.290
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.
Analyst Claims AI Impact Misread by Wall Street
- Market Misjudgment: Wedbush analyst Dan Ives highlighted that Wall Street is seriously misreading the impact of AI on enterprise software, suggesting that investors are pricing in an unrealistic scenario that overlooks the durability and high switching costs of traditional software platforms.
- Software Stock Pullback: Shares of Salesforce and ServiceNow have both dropped over 20% in the past month, reflecting market concerns that generative AI could automate high-value enterprise workflows, leading to a sharp sell-off in large-cap software stocks.
- Customer Stickiness: Ives emphasized that enterprise customers are deeply embedded in platforms like Salesforce and ServiceNow, with long-term contracts and high switching costs limiting near-term disruption, indicating that these companies will remain core participants in the AI revolution.
- Future Growth Potential: Despite the current pessimistic market sentiment, Ives believes that AI monetization is still in its early stages and could ultimately accelerate revenue growth rather than diminish it, showcasing long-term confidence in these software firms.
See More
Amazon Faces Historic Nine-Day Losing Streak
- Market Capitalization Drop: Amazon has faced a historic nine-day losing streak, resulting in a staggering $400 billion loss in market capitalization, with shares declining 18.19% during this period, reflecting investor concerns over massive capital expenditure targets for AI infrastructure.
- Psychological Phenomenon: Analyst Nicholson suggests that the market reaction is more of a psychological phenomenon rather than a fundamental change in the company's outlook, emphasizing that “the world between our ears is changing while the world around us stays the same.”
- Anxiety Over AI Returns: Investors are anxious about the timeline for returns on AI investments, with Nicholson characterizing the current trading environment as a “game of chicken” between big tech and Wall Street, indicating a high-stakes standoff as investors await tangible positive ROI.
- Enterprise Stability and SaaS Moat: Nicholson reassures that while AI may pressure traditional SaaS providers, enterprise clients remain risk-averse, asserting that current market volatility reflects sentiment rather than a new negative reality for the AI sector.
See More
AI Disruption Concerns in Cybersecurity Market
- Cybersecurity Earnings Outlook: Palo Alto Networks is set to report earnings on Tuesday, providing CEO Nikesh Arora a chance to address investor concerns about AI potentially eroding market share in cybersecurity, although the overall market sentiment remains pressured due to a broader sell-off in the software sector.
- Financial Metrics Focus: Analysts expect Palo Alto to report quarterly revenue of $2.58 billion and annual recurring revenue (ARR) of $6.128 billion; despite a positive growth outlook, they have lowered the price target to $200, indicating caution regarding future profitability.
- Restaurant Industry Challenges: Texas Roadhouse will report its fourth-quarter results on Thursday, facing rising beef costs that have pressured margins, necessitating a careful balance between maintaining its value proposition and addressing inflation without alienating customers.
- Economic Data Watch: The personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, will be released on Friday, with the market hoping for positive signals on inflation trends to support rate cut expectations in the future.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
AI Concerns Trigger Market Turmoil
- Market Volatility Intensifies: The S&P 500 and Nasdaq Composite both fell over 1% last week due to AI concerns, with sell-offs in Financial Services, Consumer Discretionary, and tech stocks indicating the potential impact of AI across multiple industries.
- Logistics Sector Hit: Shares of C.H. Robinson and Universal Logistics dropped 11% and 9%, respectively, after a Florida-based company announced a new tool to scale freight volumes without increasing headcount, highlighting AI's threat to traditional logistics models.
- Wealth Management Turmoil: Charles Schwab and Raymond James saw their stocks decline by 10% and 8%, respectively, as the launch of an AI-driven tax tool raised fears about pressure on high advisory fees, further fueling market concerns over automation.
- Investor Sentiment Cautious: Despite the sell-off, analysts believe the current pullback is a short-term phenomenon, forecasting the S&P 500 to reach 7,600 by year-end, reflecting optimism towards other sectors amidst the volatility.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Analyst Claims AI Impact Misread by Wall Street
- Market Misjudgment: Wedbush analyst Dan Ives highlighted that Wall Street is seriously misreading the impact of AI on enterprise software, suggesting that investors are pricing in an unrealistic scenario that overlooks the durability and high switching costs of traditional software platforms.
- Software Stock Pullback: Shares of Salesforce and ServiceNow have both dropped over 20% in the past month, reflecting market concerns that generative AI could automate high-value enterprise workflows, leading to a sharp sell-off in large-cap software stocks.
- Customer Stickiness: Ives emphasized that enterprise customers are deeply embedded in platforms like Salesforce and ServiceNow, with long-term contracts and high switching costs limiting near-term disruption, indicating that these companies will remain core participants in the AI revolution.
- Future Growth Potential: Despite the current pessimistic market sentiment, Ives believes that AI monetization is still in its early stages and could ultimately accelerate revenue growth rather than diminish it, showcasing long-term confidence in these software firms.
See More
Amazon Faces Historic Nine-Day Losing Streak
- Market Capitalization Drop: Amazon has faced a historic nine-day losing streak, resulting in a staggering $400 billion loss in market capitalization, with shares declining 18.19% during this period, reflecting investor concerns over massive capital expenditure targets for AI infrastructure.
- Psychological Phenomenon: Analyst Nicholson suggests that the market reaction is more of a psychological phenomenon rather than a fundamental change in the company's outlook, emphasizing that “the world between our ears is changing while the world around us stays the same.”
- Anxiety Over AI Returns: Investors are anxious about the timeline for returns on AI investments, with Nicholson characterizing the current trading environment as a “game of chicken” between big tech and Wall Street, indicating a high-stakes standoff as investors await tangible positive ROI.
- Enterprise Stability and SaaS Moat: Nicholson reassures that while AI may pressure traditional SaaS providers, enterprise clients remain risk-averse, asserting that current market volatility reflects sentiment rather than a new negative reality for the AI sector.
See More
AI Disruption Concerns in Cybersecurity Market
- Cybersecurity Earnings Outlook: Palo Alto Networks is set to report earnings on Tuesday, providing CEO Nikesh Arora a chance to address investor concerns about AI potentially eroding market share in cybersecurity, although the overall market sentiment remains pressured due to a broader sell-off in the software sector.
- Financial Metrics Focus: Analysts expect Palo Alto to report quarterly revenue of $2.58 billion and annual recurring revenue (ARR) of $6.128 billion; despite a positive growth outlook, they have lowered the price target to $200, indicating caution regarding future profitability.
- Restaurant Industry Challenges: Texas Roadhouse will report its fourth-quarter results on Thursday, facing rising beef costs that have pressured margins, necessitating a careful balance between maintaining its value proposition and addressing inflation without alienating customers.
- Economic Data Watch: The personal consumption expenditures (PCE) index, the Fed's preferred inflation gauge, will be released on Friday, with the market hoping for positive signals on inflation trends to support rate cut expectations in the future.
See More
Anthropic Leads AI Revolution, Software Industry Faces Challenges
- AI Disrupts Traditional Software: The rise of Anthropic poses significant challenges to traditional software companies like Workday and Salesforce, particularly in the application of AI technology, threatening their market share and customer loyalty.
- Surge in Capital Expenditures: Tech giants like Amazon and Google have significantly raised their capital expenditure outlooks, with Amazon projecting spending to reach $200 billion, far exceeding the $147 billion consensus, which could impact stock performance and investor confidence.
- Intensified Market Competition: The rapid advancement of AI technology raises questions about the value of enterprise software, leading investors to adopt a pessimistic view on the future of traditional software companies, especially in labor-intensive areas that may face workforce reductions due to AI adoption.
- Investor Confidence Shaken: Despite significant advancements by companies like Anthropic and OpenAI in the AI space, market confidence in traditional software companies is waning, resulting in poor stock performance over the past six months and raising concerns about future profitability.
See More
AI Concerns Trigger Market Turmoil
- Market Volatility Intensifies: The S&P 500 and Nasdaq Composite both fell over 1% last week due to AI concerns, with sell-offs in Financial Services, Consumer Discretionary, and tech stocks indicating the potential impact of AI across multiple industries.
- Logistics Sector Hit: Shares of C.H. Robinson and Universal Logistics dropped 11% and 9%, respectively, after a Florida-based company announced a new tool to scale freight volumes without increasing headcount, highlighting AI's threat to traditional logistics models.
- Wealth Management Turmoil: Charles Schwab and Raymond James saw their stocks decline by 10% and 8%, respectively, as the launch of an AI-driven tax tool raised fears about pressure on high advisory fees, further fueling market concerns over automation.
- Investor Sentiment Cautious: Despite the sell-off, analysts believe the current pullback is a short-term phenomenon, forecasting the S&P 500 to reach 7,600 by year-end, reflecting optimism towards other sectors amidst the volatility.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
