ServiceNow stock slides 20% as AI concerns rise and investors adjust holdings

ServiceNow's shares fell about 20% in June as the market weighed the impact of generative AI on its SaaS business model. Analysts noted that while the company posted strong subscription revenue and cash flow, its high valuation – a price‑to‑earnings multiple around 63 – makes the stock vulnerable to doubts that AI could erode the value of traditional software services. In the same period, several institutional investors increased their positions: GM Advisory Group LLC added 13,015 shares, Praxis Investment Management boosted its stake by 11.7%, and other funds such as Integral Investment Advisors, Revisor Wealth Management and V Square Quantitative Management also raised holdings. Insider sales totaling over 28,000 shares were reported in the last three months, including sales by director Anita M. Sands. Overall, institutional owners now hold roughly 87% of the company's stock, while analysts have revised price targets downwards for many firms, reflecting heightened uncertainty about ServiceNow's AI‑driven growth prospects.