Key Points
ServiceNow (NYSE: NOW) and Palantir Technologies (NASDAQ: PLTR) are facing significant stock declines of 33% and 23% respectively this year as concerns grow that agentic artificial intelligence (AI) could render many traditional software-as-a-service (SaaS) companies obsolete. Both companies offer platforms designed to manage AI agents, with ServiceNow’s stock currently trading at 61 times its trailing twelve-month earnings and Palantir’s at 154 times.
Despite the market volatility, both companies have established long-term relationships with clients and provide critical platforms—ServiceNow’s Control Tower and Palantir’s Artificial Intelligence Platform—needed to manage increasing reliance on agentic AI. The transition to AI in SaaS may result in reduced demand for legacy solutions, highlighting the importance of adaptability and ongoing customer engagement for these firms.
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