Once a Promising AI Player… $7 Billion Vanished from U.S. Cloud Stock in a Day

On February 11, ServiceNow Inc. (NASDAQ: NOW) plunged 5.56% on the NYSE, closing at $100.58. With trading volume topping 14.3 million shares and volatility elevated, the company lost about $5.5 billion in market capitalization in a single day—roughly 7.5 trillion won—bringing its total market value to approximately $105.2 billion (around 140 trillion won). The stock has fallen to less than half of its 52-week high of $211.48 and is now trading near its 52-week low of about $98.

In its fourth-quarter 2025 results, announced on January 28, ServiceNow reported revenue and non-GAAP EPS that slightly beat analysts’ estimates. However, its guidance for 2026 subscription-revenue growth came in below expectations, triggering an intra-day sell-off of over 12%. More recently, the company has pursued aggressive M&A and strategic partnerships—deepening its alliance with Anthropic to integrate Claude-based generative AI into workflow-automation agents, and agreeing to acquire Amis for $7.75 billion (approximately 10 trillion won)—to bolster its security and AI capabilities. Despite these moves, concerns over rising costs and slowing growth have kept investor sentiment cautious.

ServiceNow delivers enterprise workflow and IT service-management software via cloud subscriptions, positioning itself as a leading SaaS platform driving digital transformation and automation at global corporations. Since appointing former SAP executive Bill McDermott as CEO, the company has rapidly expanded through targeted enterprise sales and AI- and security-focused acquisitions. Yet its high valuation and aggressive investment strategy have made its stock highly sensitive to quarterly results and forward guidance, resulting in pronounced price swings.