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ServiceNow's Moat Threatened Amid Growing AI Automation Risks, UBS Says in Downgrade

ServiceNow's (NOW) competitive advantage may have eroded amid growing evidence that workflow automation tasks can be automated by harnessing artificial intelligence models, UBS Securities said in a note e-mailed Friday.The company, which provides both software- and platform-as-a-service offerings, may also be facing headwinds from indications of reduced enterprise spending on non-AI or core software, the brokerage said."Our view to date, and the reason why ServiceNow has been our only buy-rated application software stock, has been that it has a wider moat and a more compelling 'AI winner' narrative than peers such as Salesforce (CRM) and Workday (WDAY)," UBS analysts Karl Keirstead and Claire Gerdes said in a note to clients."Now, we have less confidence in that view given anecdotes that workflow automation tasks can indeed be automated by harnessing AI models, raising the risk that more enterprises may do so instead of upgrading to ServiceNow's Pro Plus/Now Assist stock keeping unit," the duo wrote.UBS downgraded its rating on the ServiceNow stock to neutral from buy and lowered its price target to $100 from $170.The company's shares were down 8.6% in Friday afternoon trade, bringing its year-to-date losses to 46%.UBS said it now sees ServiceNow posting "skinnier-than-normal" beats in the quarters ahead."While ServiceNow has a strong track record of beating its guidance and hence we're not calling for a miss, the most likely scenario now appears to be skinnier-than-normal beats in the coming quarters and more limited upside to the guidance for stable organic (constant-current subscription revenue) growth of 19% in 2026," the analysts said.Earlier this year, ServiceNow agreed to integrate OpenAI's AI models directly into its business software under a multiyear deal aimed at helping accelerate enterprise AI adoption and outcomes.ServiceNow is scheduled to report first-quarter financial results April 22.Price: $82.33, Change: $-7.48, Percent Change: -8.33%

$CRM$NOW$WDAY

US Natural Gas Update: Futures Edge Lower in Listless Trade

US natural gas futures edged lower in subdued midday trading Friday as storage data largely matched expectations and shoulder-season demand remained weak against a backdrop of ample supply.The front-month Henry Hub contract, along with the continuous contract, fell 0.56% to $2.66 per million British thermal units.Earlier in the session, prices touched an eight-month low of $2.63/MMBtu before recovering.Analysts at Gelber and Associates said the primary driver continues to be fading weather-related demand, with warmer temperatures reducing residential and commercial consumption. Export demand, however, offered some support, with flows to Mexico holding at 7.4 Bcf/d and LNG feedgas near 20.2 Bcf/d.Production rebounded to 109.3 Bcf/d, while Canadian imports remained steady at 5.1 Bcf/d, bringing total supply to 114.4 Bcf/d and leaving the domestic market well supplied, the firm added.On Thursday, the US Energy Information Administration reported a 50 billion cubic feet injection into storage for the week ended Apr. 3. The build exceeded the prior week's 36 Bcf injection but fell short of the 57 Bcf added during the same period last year. The figure also came in above market expectations of a 41-Bcf increase, according to data compiled by Investing.com.Despite the larger-than-expected build, the Energy Buyer's Guide said the report failed to provide fresh directional momentum for prices. It noted that next week's data may show a slightly smaller injection before builds accelerate in subsequent weeks."Unless the weather turns less bearish or supply slips again, Henry Hub looks more likely to stay tied to soft spring fundamentals than to break into a broader move higher," Gelber and Associates said.

Asia Markets9d ago

US Equity Indexes Mixed Amid Anticipated Iran Peace Talks, Expected Hot Inflation

US equity indexes were mixed in Friday's midday trading as a fragile Iran truce looked set to hold until peace talks begin in Pakistan on Saturday, while a red-hot inflation read was in line with the outlook.The Nasdaq Composite rose 0.3% to 22,887.1, while the S&P 500 fell 0.2% to 6,814.3 and the Dow Jones Industrial Average slid 0.6% to 47,881.5. Technology and materials were among the gainers, while consumer staples, health care, and financials led the decliners.A key aim of the Iran peace talks in Islamabad is to fully reopen the Strait of Hormuz, where President Donald Trump said Thursday that Iran is "doing a very poor job" of letting crude oil pass and cautioned against collecting tolls in the strategic waterway, the report said.Iran's parliament speaker, Mohammad Bagher Ghalibaf, said talks cannot start until the US meets two conditions: a ceasefire in Lebanon and the release of blocked Iranian assets.Vice President JD Vance, setting off for US-Iran talks in Pakistan's capital Islamabad, said Washington is "willing to extend the open hand" in this weekend's negotiations but warned Tehran not to "try to play us," The Wall Street Journal said.Ambassadors from Israel, Lebanon, and the US will hold talks in Washington, DC, on Friday to set the table for future negotiations between Israel and Lebanon, an Israeli official and a source familiar with the talks told CNN. The initial discussions will target an agreement on the agenda for direct negotiations, which Israel said would be aimed at disarming Hezbollah and establishing "peaceful relations" between the two countries.West Texas Intermediate crude oil futures advanced 1% to $98.92, and Brent crude futures climbed 1.3% to $97.08.In economic news, US consumer inflation accelerated to its highest monthly reading in nearly four years in March as the Middle East conflict sent energy prices sharply higher.The consumer price index advanced 0.9% last month, its strongest pace of growth since June 2022, the Bureau of Labor Statistics reported Friday. The latest print met a Bloomberg-polled consensus view. Prices rose 0.3% in February. Annually, inflation grew to 3.3% from February's 2.4% rise, falling short of Wall Street's 3.4% projection.Energy price growth jumped about 11% sequentially in March, led by a 21% surge in gasoline, accounting for nearly three-quarters of the headline increase, official data showed.US Treasury yields rose, with the 10-year up 2.6 basis points to 4.32% and the two-year climbed 2.5 basis points to 3.81%."The fallout of the US/Israel-Iran war was evident in the March consumer price index," Oxford Economics Lead US Economist Bernard Yaros said in remarks emailed to.In company news, Barclays adjusted its price target for Fair Isaac's (FICO) shares to $1,950 from $2,400 while maintaining its overweight rating. The stock traded down 14% intraday, among the steepest decliners on the SP 500.In precious metals, gold futures fell 0.7% to $4,784.9 and silver futures slipped 0.3% to $76.22.

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Commodities9d ago

EMEA Natural Gas Update: Prices Ease on Peace Hopes but Supply Risks Limit Decline

European natural gas futures retraced some earlier losses in after-hours trading on Friday but remained below the previous close as optimism over potential peace agreements weighed on prices.The front-month Dutch TTF contract declined 5.02% to 43.86 euros per megawatt-hour, while UK NBP futures dropped 5.63% to 110.19 British pence per therm.Prices initially traded lower as momentum built around diplomatic efforts tied to Middle Eastern conflicts. A Friday Bloomberg report also indicated that Ukraine's lead negotiator with Russia sees progress toward a potential agreement with the Kremlin and suggested a resolution to the war may not take long to achieve.However, losses were partially reversed as traders refocused on supply fundamentals, including the need to replenish low inventories and the uncertain outlook for ongoing peace negotiations.Diplomatic developments remain in focus. US Vice President JD Vance is scheduled to hold talks with Iranian counterparts in Islamabad on Saturday, while Israeli and Lebanese negotiators are set to meet in Washington next week to discuss potential resolutions to regional conflicts.Supply constraints continued to provide underlying support. ANZ analyst Daniel Hynes said LNG tankers remain stranded in the Persian Gulf with no clear end to the standoff, adding that the situation is being compounded by disruptions in Australia as Chevron's Wheatstone facility is operating at about 50% capacity following cyclone damage last month, while workers at the Ichthys LNG export plant are considering industrial action after failed talks with operator Inpex Corp.The Hormuz Strait Monitor said seven ships passed the Strait in the past 24 hours, down considerably from the pre-conflict norm of around 138 per day, according to the UK's Joint Maritime Information Center.On the storage front, Gas Infrastructure Europe reported that EU inventories stood at 28.91% of capacity on Friday, down from about 35% a year earlier.In its Summer Supply Outlook for 2026, the European Network of Transmission System Operators for Gas said Thursday that EU infrastructure capacity should allow storage levels to reach at least 80% by Nov. 1. The group noted that steady injections since early April are a positive sign, adding that an extended refill period could ease price pressure and reduce the risk of a late-season rush to secure supplies. However, it warned that damage to the Gulf's energy infrastructure and ongoing disruption in the Strait of Hormuz could have longer-term effects. Separately, Energy Commissioner Dan Jorgensen also urged member states to consider reaching the 80% storage target earlier in the injection season to improve market certainty.

Financial News

ServiceNow's Moat Threatened Amid Growing AI Automation Risks, UBS Says in Downgrade

US Natural Gas Update: Futures Edge Lower in Listless Trade

ServiceNow's Moat Threatened Amid Growing AI Automation Risks, UBS Says in Downgrade

US Natural Gas Update: Futures Edge Lower in Listless Trade

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