Stock Downgrade

KeyBanc downgraded ServiceNow to “underweight,” citing the “AI is eating software” narrative, which suggests AI may reduce demand for per-seat SaaS licenses. Analyst Jackson Ader warned of potential disruption to ServiceNow’s IT workflow business by 2026. Despite a significant year-to-date stock drop, Jim Cramer remains optimistic, crediting CEO Bill McDermott’s leadership. The market is watching how ServiceNow adapts its AI strategy and pricing to evolving business models.

Marvell Technology (MRVL) shares fell 15% after a weaker-than-expected data center revenue report and cautious Q3 outlook, despite exceeding EPS estimates. While Q2 revenue grew 58% YOY, driven by AI demand, Q3 revenue guidance of $2.06 billion fell short of expectations. Investors are seeking clarity on customer engagements, and Bank of America downgraded MRVL’s stock, citing concerns about near-term AI growth. The company anticipates a stronger Q4, attributing Q3’s flatness to “nonlinear growth” in custom AI chips.