ServiceNow and Salesforce Look Like Buys After Fear-Driven Selloff
A Guggenheim analyst argues AI-doom fears have crushed valuations too far, making both software giants attractive entry points.
If you've been sitting on the sidelines watching ServiceNow and Salesforce get hammered, a Guggenheim analyst just handed you a contrarian thesis worth considering. The call is simple: the market has priced in Armageddon for these two enterprise software giants, and that's an overreaction.
Yes, the AI threat is real. Nobody's dismissing that. But there's a wide gap between "AI will disrupt this business" and "these companies are worthless." Guggenheim is planting a flag right in that gap, arguing current valuations are too depressed relative to what these platforms actually deliver to enterprise customers today — and will keep delivering for years.
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Both ServiceNow and Salesforce sit at the core of how large companies run their operations and manage customer relationships. That kind of deep workflow integration doesn't evaporate overnight, even in a world where AI is reshaping software. If anything, both companies are actively embedding AI into their own products, which could flip the narrative from threat to tailwind.
The tradeable angle here is straightforward. When Wall Street consensus swings to "Armageddon" territory, that's typically when the asymmetric risk-reward starts favoring the bulls. Guggenheim is essentially saying the risk of missing a recovery is now greater than the risk of further downside — a classic setup for beaten-down quality names.
Obviously, do your own due diligence before pulling the trigger. But if you've been waiting for a credible analyst to give you cover on a re-entry, this might be your signal. Continue reading at MarketWatch.com
