Software stocks crater on cautious AI guidance despite beating earnings

Software stocks crater on cautious AI guidance despite beating earnings

15h ago
SaaStr AI SprinklerAS Gtm_strategy New

The Gist

  • ServiceNow dropped 15% despite beating Q1 revenue by $30M
  • IBM fell 10% as software growth slowed from 14% to 11.3%
  • Market punishes legacy vendors for lacking bold AI narratives
  • YTD losses range from -20% (Toast) to -74% (Monday.com)

RevBots.ai View:

AI Sprinkler vendors getting crushed for bolting on features while ARM players build native AI revenue engines.

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