AI Fears Cause $11 Trillion Erosion... Major Decline in Enterprise Software Stocks

Enterprise workflow automation firm ServiceNow Inc. (NYSE: NOW) closed at $102.63 on the New York Stock Exchange on February 5, a 7.63% drop from the previous day. Its market capitalization stands at approximately $107.3 billion (about ₩157 trillion), erasing roughly $7.6 billion (₩11 trillion) in value in a single session. Trading volume surged, exceeding 20.09 million shares.

In early February, growing fears that generative AI could encroach on the enterprise software sector have prompted a broad “basket sell-off” of related stocks. ServiceNow itself took a direct hit to investor sentiment, plunging more than 7% intraday on February 3. Nonetheless, in its fourth-quarter 2025 results announced on January 28, the company reported 21% year-over-year subscription revenue growth and unveiled an additional $5 billion share-repurchase authorization (about ₩7 trillion), underscoring the strength of its core performance and growth outlook.

ServiceNow is a U.S. software company that provides a cloud-based workflow and IT service-management platform, helping global enterprises automate processes and cut costs. Recognized as a leader in the “digital back office” for businesses, the company—led by former SAP executive Bill McDermott—has recently emerged as a key player in the enterprise AI-platform race with generative AI offerings such as Now Assist.