Microsoft and ServiceNow Struggle Amid Tech Sell-off
Microsoft (NASDAQ: MSFT) saw its stock close down 4% on Thursday, following a wider sell-off in the tech industry prompted by ServiceNow’s disappointing first-quarter results. Microsoft’s share price is now down 14% year-to-date and 23% from its recent highs. The S&P 500 and Nasdaq Composite also fell, closing down 0.5% and 0.9%, respectively.
ServiceNow reported non-GAAP earnings of $0.97 per share, slightly exceeding expectations, but its revenue of $3.77 billion fell short of some analysts’ forecasts. The company’s guidance for a gross margin of 81.5% for the year was below Wall Street’s target of 82.2%, raising concerns about pricing power in the software sector. This led to a historic drop for ServiceNow’s stock, contributing to bearish sentiment for Microsoft and other tech companies.
