UBS Cuts ServiceNow to Neutral: SaaS Repricing Is 'Just the Beginning'

24/7 Wall St.·medium signal

UBS reportedly downgraded ServiceNow to Neutral with a $100 price target, calling the April 9 SaaS selloff 'just the beginning' of a longer repricing cycle. Contrarian view: Dan Ives called the software selloff a 'generational buy,' arguing enterprise switching costs and data lock-in will protect incumbents longer than the market assumes. Even Microsoft beat — $81B quarter — but saw stock drop 10% because Azure growth decelerated from 40% to 39%. In 2026, beating expectations isn't enough.