US Stock Market Move | AI application software stocks weakened in early trading; ServiceNow (NOW.US) fell over 23% after earnings.

On Thursday, US AI application software stocks weakened in early trading. ServiceNow (NOW.US) fell over 23% after earnings, Atlassian (TEAM.US) dropped over 6%, and Salesforce, Inc. (CRM.US) fell nearly 5%. On the news front, ServiceNow released its fiscal 2026 third-quarter earnings report. Data showed that the company's quarterly revenue reached US$4.106 billion, up 20.5% year-over-year, or 20% growth at constant currency; GAAP net income was US$277 million, down about 45% from US$502 million in the same period last year; GAAP diluted earnings per share were US$0.27, below US$0.48 in the same period last year. Morgan Stanley published an in-depth research report on the company's third quarter, pointing out that the core contradiction is that the company's AI commercialization data is impressive, but the AI dividend has not yet translated into an acceleration in overall business growth. The bank maintained its "Overweight" rating but lowered its target price to US$160 from US$180; during the reporting period, the company's closing price was US$150.13, with a market capitalization of US$156.586 billion. It judged that the stock price may trade in a range in the short term, and that the core metric cRPO needs to return to acceleration before there is room for valuation upside.