Why I'm Buying ServiceNow Stock While Everyone Else Is Panicking About AI Disruption

One of the hardest-hit parts of the market this year has been software stocks. There has been a growing fear among investors that artificial intelligence (AI) will completely disrupt the software-as-a-service (SaaS) industry. As such, there has been pretty indiscriminate selling in the space, with few SaaS stocks spared.There are three main tenets to the bear case against software stocks. One is simply that AI will result in fewer workers, which will hurt SaaS company revenue, since most price their subscriptions based on the number of users who have access to their platforms. The second is that with AI, those organizations will be more easily able to develop custom software, bypassing third-party vendors. Finally, some see large language model (LLM) developers like Anthropic and OpenAI looking to use AI to bypass the software layer entirely.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool