Wedbush Adds Salesforce and ServiceNow to AI 30 List
Sentiment improved further after Wedbush Securities placed Salesforce and ServiceNow on its proprietary “AI 30 List,” a group of companies the firm believes are positioned to benefit from artificial-intelligence adoption. Senior equity research analyst Dan Ives described recent fears of an impending “software Armageddon” as exaggerated. In his weekend note, Ives emphasized that enterprises must still address data-migration complexity and compliance risks before fully embracing AI-only solutions, making an abrupt switch away from incumbent vendors unlikely.
Salesforce shares have declined roughly 26% so far in 2026, while ServiceNow is down 32%. Both companies rose in Monday’s session, trimming some of those losses. The skepticism that AI could quickly eclipse customer-relationship management tools, workflow platforms and IT-service automation systems has been a central theme for bears, but Ives contends the short-term disruption narrative misreads the practical hurdles large organizations face when redesigning mission-critical software stacks.
Mixed Signals From Earnings Season
While analyst commentary drove Monday’s relief rally, corporate results highlighted the sector’s near-term uncertainty. Monday.com’s quarterly report, released before the opening bell, showed weaker-than-expected revenue guidance for both the current quarter and the full fiscal year. The stock fell 20% as investors digested the outlook. During the earnings call, co-founder and co-CEO Eran Zinman said clients remain committed to the company’s work-management platform, viewing existing systems as the easiest pathway for experimenting with new AI features.
Zinman’s remarks echoed the broader sentiment that enterprises prefer to layer generative-AI capabilities onto familiar applications instead of launching entirely separate deployments. This approach, companies argue, preserves data context, security protocols and established workflows—all factors that slow the adoption of stand-alone AI utilities.
Strategists Weigh Valuations After Pullback
Market strategists are now assessing whether the recent sell-off has created selective opportunities. Victoria Fernandez, chief market strategist at Crossmark Global Investments, said she expects AI providers and legacy software companies to “co-exist on some level,” though the extent of pricing power each side can command is still unclear. She noted that several well-capitalized firms have experienced “significant pullbacks,” leaving room for investors to begin accumulating positions gradually.
Imagem: Internet
That view overlaps with commentary from large brokers who consider the aggregate decline excessive in light of record corporate information-technology budgets. According to Gartner’s latest global IT spending forecast, software remains the fastest-growing category of enterprise technology outlays, a backdrop analysts say should support established vendors despite rising competition from AI-native entrants.
Underlying Concerns Still Present
Even as Monday’s session provided relief, investors remain tuned to potential catalysts that could rekindle volatility. Upcoming earnings from Microsoft, Adobe and Workday will offer fresh insight into how management teams view AI’s competitive impact. Meanwhile, regulatory scrutiny of large-language models continues to evolve in major markets, adding another layer of uncertainty for both incumbents and newcomers.
The valuation gap between AI pure-plays and diversified software companies also persists. Start-ups commanding premium multiples in private rounds have not yet faced the same market discipline that public companies experienced in recent weeks. Some portfolio managers argue that convergence—either through lower private valuations or a rebound in public software stocks—will be necessary before confidence fully returns.
Key Metrics From Monday’s Trading Session
- Oracle (ORCL) +10% on analyst upgrade; down 20% year-to-date.
- Salesforce (CRM) +4% intraday; down roughly 26% year-to-date.
- ServiceNow (NOW) +5% intraday; down roughly 32% year-to-date.
- Monday.com (MNDY) –20% after guidance cut.
- Tech-Software Sector ETF (IGV) +3% on the day; down 20% for 2026.
Trading volumes were higher than the 30-day average for most names, suggesting that institutional investors were active buyers as analysts pushed back against worst-case scenarios. Options activity also indicated reduced demand for near-term protection, with implied volatility ticking lower across several large-cap software names.
Outlook
Sector specialists caution that the debate over AI’s long-term impact on software companies will not disappear soon. However, Monday’s rebound underscores that many market participants remain skeptical of projections implying an immediate and total shift away from licensed or subscription-based platforms. For now, the prevailing view among prominent analysts is that integration rather than displacement represents the more likely near-term path.
Crédito da imagem: Cheng Xin/Getty Images
