Live from New Delhi. This is inside with Haslinda Amin, where we will dig into India's fast rising artificial intelligence ambitions and the shockwaves hitting the country's storied I. T.giants. As India hosts one of the world's biggest AI summits. We speak live with Schneider Electric CEO Olivia Bloom, ServiceNow president and CEO Omid Zaveri and Fractal Analytics co-founder and CEO.Trick on the Alarm, uncanny about how this technology is reshaping the world. And we bring you more from our conversations wi ...

Core Viewpoint - The recent decline in software stocks is attributed to valuation risk rather than fears of AI disruption, which may be an excuse for the sell-off [3][6][13]. Group 1: Market Performance - Many popular software stocks, including Palantir Technologies, Adobe, Salesforce, and ServiceNow, have seen declines of approximately 22% to 30% year-to-date in 2026 [2]. - Despite strong financial results and AI being a potential growth catalyst, these stocks have faced significant sell-offs [2][4]. Group 2: Valuation Risk - The concept of valuation risk suggests that stocks trading at high valuations may be subject to market corrections, even if their underlying fundamentals remain strong [7]. - The S&P 500's rise of 78% from 2023 to the end of 2025 has led to many investors being unfamiliar with the implications of valuation risk [7]. Group 3: Company-Specific Insights - Palantir's stock has increased over 80% since the beginning of 2025, with a price-to-sales ratio expanding by over 20% to 75, despite a 22% decline year-to-date [9]. - Adobe, Salesforce, and ServiceNow have also outperformed the S&P 500 over the past 15 years, despite recent declines [10]. Group 4: Broader Market Trends - Other software companies, such as Snowflake, CrowdStrike, and Shopify, exhibit high price-to-sales multiples (14, 23, and 13 respectively), raising concerns about their valuations given their current financial performance [12]. - The overall sell-off in software stocks may reflect a more discerning investor approach to evaluating competitive advantages and sustainability [13].

Core Viewpoint - ServiceNow is among the enterprise software companies experiencing significant stock declines due to AI concerns, prompting executives to reassure market sentiment [1][2] Group 1: Company Actions - CEO Bill McDermott and other executives have agreed to cancel pre-arranged stock sale plans, with McDermott planning to purchase $3 million worth of ServiceNow stock later this month [1][2] - The company recently announced a $5 billion stock buyback plan aimed at boosting investor confidence [2] Group 2: Market Context - Despite the overall sell-off in the enterprise software sector, ServiceNow's stock has dropped over 25% since the beginning of the year [2] - There are discussions among peers regarding the potential for other CEOs to follow McDermott's lead in canceling pre-arranged stock trading plans [2] - Investors are concerned that AI may disrupt traditional software licensing models, allowing companies to significantly reduce software budgets through in-house development [2]

Core Viewpoint - US stock market experienced a slight increase, supported by gains in financial stocks, but overall gains were limited due to a decline in software stocks [1][10]. Group 1: Market Performance - The Dow Jones Industrial Average rose by 32.26 points, or 0.07%, closing at 49,533.19 points; the Nasdaq increased by 31.71 points, or 0.14%, to 22,578.38 points; and the S&P 500 gained 7.05 points, or 0.10%, ending at 6,843.22 points [3][12]. - Financial stocks such as Citigroup and JPMorgan saw increases, with Citigroup up 2.7% and JPMorgan up 1.7% [3][12]. - Software stocks faced significant declines, with ServiceNow down over 1% (31% year-to-date), Autodesk and Palo Alto Networks down approximately 2% (23% and 11% year-to-date respectively), and Salesforce and Oracle down about 3% (30% and 20% year-to-date respectively) [3][12]. Group 2: Investor Sentiment and Trends - Concerns over artificial intelligence potentially replacing specific software providers have negatively impacted the software industry [5][12]. - A recent Bank of America fund manager survey indicated that the level of stock accumulation has triggered a contrarian sell signal, with the stock overweight ratio reaching its highest level since December 2024 [6][13]. - The Bank of America Bull & Bear Indicator currently reads 8.2, signaling a "sell" recommendation, suggesting that high market optimism may indicate overvaluation of stocks [6][13]. Group 3: Economic Indicators and Future Outlook - The S&P 500 index and Dow Jones both experienced declines over the past week, with the S&P 500 down over 1% and the Nasdaq down over 2% [7][14]. - Concerns regarding AI disruption have overshadowed recent consumer price index (CPI) data, which was milder than expected [7][15]. - Investors are awaiting further information on inflation trends, with a personal consumption expenditures report due soon [7][15]. Group 4: Federal Reserve Insights - Federal Reserve officials are assessing the potential impact of AI on economic growth and productivity, which is crucial for achieving growth without increasing inflation [9][17]. - Fed officials suggest maintaining stable interest rates until more evidence of inflation moving towards the 2% target is observed [9][17].

Core Insights - Figma is launching a new feature called "Code to Canvas" in partnership with Anthropic, which allows users to convert AI-generated code into editable designs within Figma [1][2] - This feature aims to bridge the gap between AI coding tools and Figma's design process, enabling teams to refine and compare design options directly [2] - The introduction of this feature reflects a belief that AI coding tools have not diminished the need for design but rather made it more critical [3] Company Performance - Figma's stock has experienced a significant decline, dropping approximately 85% from its 52-week high of $142.92 reached in August [5] - The company is affected by a broader market trend referred to as the "SaaSpocalypse," which has seen a sell-off in software-as-a-service stocks, impacting major players like Salesforce and ServiceNow [4] - Figma is set to report its earnings after the market close, which may provide further insights into its financial health amidst the current market conditions [5]

Core Viewpoint - The fear among software investors is driven by the potential commoditization of enterprise software due to advancements in AI, particularly with platforms like OpenAI's Frontier [1] Group 1: Company Performance - ServiceNow reported Q3 revenue of $3.41 billion, reflecting a 22% year-over-year increase, yet its stock price fell significantly [1] - Salesforce's stock has dropped 28% year-to-date to $189.72, while ServiceNow's stock has decreased by 30.1% to $107.08 [5] - Microsoft has also experienced a 17% decline this year, indicating that even leading AI companies are affected by market fears [8] Group 2: Market Sentiment and Valuation - The current market is pricing traditional SaaS models as obsolete, leading to a selloff that even positive earnings cannot counter [7] - Goldman Sachs CEO David Solomon believes the selloff is overdone, suggesting that many companies will adapt successfully to AI [3] - Salesforce is trading at a low valuation of 14.4x forward earnings, despite significant growth in its Data Cloud and AI ARR, which increased by 120% year-over-year [3] Group 3: Future Outlook and AI Integration - Analysts like Dan Ives argue that the selloff represents a disconnect between market pricing and fundamental value, similar to past market crashes [11] - The future success of enterprise software companies hinges on their ability to integrate AI into their platforms rather than being displaced by it [12] - Morgan Stanley estimates that generative AI could add approximately $400 billion to the enterprise software market by 2028, indicating potential growth despite current fears [4]

Market Overview - The Dow Jones Industrial Average rose by 230.75 points, an increase of 0.47%, closing at 49,682.73 points; the Nasdaq gained 85.93 points, up 0.38%, at 22,683.08 points; and the S&P 500 increased by 38.10 points, a rise of 0.56%, ending at 6,870.86 points [3][10] - The market is weighing the impact of artificial intelligence on various sectors, including logistics, real estate, and software [1][8] Company Performance - Applied Materials saw its stock price surge by 8.8% due to strong earnings and an encouraging outlook [3][10] - Airbnb's stock rose by 54.3%, reflecting investor optimism regarding the company's guidance [3][10] - Pinterest's stock plummeted by 17.8% after reporting fourth-quarter results that fell short of expectations and providing a weak outlook [3][10] Sector Analysis - Concerns about the disruptive effects of artificial intelligence have spread across multiple sectors, particularly real estate, trucking, and software, leading to a nearly 1.6% drop in the S&P 500 and approximately 2% decline in the Nasdaq on the previous day [3][10] - The "Tech Seven" giants all experienced declines, with Cisco Systems dropping 12% due to disappointing guidance, and Apple falling 5%, marking its largest single-day drop since April 2025 [3][10] Analyst Insights - Brian Levitt, a strategist at Invesco, noted that while there is a frenzy around AI, the market is becoming more discerning in identifying winners and losers, suggesting that the overall market remains robust despite some significant declines [3][10] - UBS strategists indicated that the full impact of AI on various industries and stocks is still to be observed, but they believe it validates the monetization potential of AI, making it a key component of investment portfolios [3][10] Software Sector Commentary - Dan Ives, a global technology research head at Wedbush Securities, stated that while some software stocks may suffer due to the rise of AI, not all should be dismissed, highlighting Salesforce and ServiceNow as potential core players in the AI revolution [4][11] - Ives criticized Wall Street for misjudging the widespread effects of AI across the tech sector, suggesting a significant disconnect in how the industry is perceived [5][11] Economic Data - The U.S. Consumer Price Index (CPI) for January rose by 2.4% year-over-year, a decrease of 0.3 percentage points from the previous month, marking the lowest inflation rate since April 2025 [6][13] - Core CPI, excluding food and energy, increased by 2.5%, aligning with economists' expectations [6][13] - The overall CPI rose by 0.2% month-over-month, while core CPI increased by 0.3%, both below market expectations [6][13]

Core Viewpoint - Oracle's stock has significantly declined, trading down 52% from its all-time high and 19.5% year to date, raising questions about its investment thesis and future prospects [2]. Group 1: Company Performance - Oracle experienced a historic surge in its market capitalization, nearing $1 trillion, and briefly made its co-founder Larry Ellison the wealthiest person in the world [1]. - The company is heavily investing in Oracle Cloud Infrastructure (OCI), with cloud revenue constituting 50% of its latest quarter's revenue [3]. - Oracle's database and data management software segment remains a high-margin cash cow for the company [3]. Group 2: Industry Context - The software industry is facing a downturn due to fears that AI will disrupt established workflows, affecting Oracle and other major players like Microsoft and ServiceNow [4]. - Oracle's stock performance is being influenced by broader industry trends, which may continue to drag it down [4]. Group 3: Future Outlook - Oracle announced a plan to grow OCI revenue from approximately $10 billion in fiscal 2025 to $144 billion by fiscal 2030, supported by a 359% increase in remaining performance obligations (RPO) [5]. - As of December, Oracle's RPO reached $523 billion, bolstered by high-profile deals with hyperscalers like Meta Platforms [5]. - However, Oracle's reliance on OpenAI, which constitutes around $300 billion of its RPO, raises concerns about the sustainability of its growth plans [6].

Core Insights - ServiceNow, Inc. has signed an agreement to acquire Pyramid Analytics, a company that consolidates data work processes into a single platform [1][5] - The acquisition aims to integrate data analysis capabilities directly into ServiceNow's work systems, enabling real-time answers to business questions [4][6] - The estimated acquisition price for Pyramid Analytics is in the hundreds of millions of dollars, with the company having raised $200 million since its inception [5][7] Company Overview - Pyramid Analytics has been active for over a decade in the business intelligence sector, competing with major players like Microsoft and Tableau [7] - The company focuses on large enterprises and has developed a platform that links various information sources, facilitates advanced analysis, and provides AI-based recommendations [7] - Pyramid Analytics employs around 200 people, with a significant number based in Israel [7] Recent Acquisitions - ServiceNow recently acquired another Israeli company, Armis, for $7 billion, which operates in the cybersecurity space [6] - The acquisition of Pyramid Analytics is intended to enhance ServiceNow's capabilities in data analysis and artificial intelligence [6]

Economic Data and Market Reaction - The U.S. non-farm payrolls increased by 130,000 in January, significantly exceeding the market expectation of 55,000, marking the largest increase in over a year [1][2] - The unemployment rate slightly decreased from 4.4% in December to 4.3%, the lowest since August 2025 [2] - Despite the strong employment report, U.S. stock markets experienced volatility, with the Dow Jones Industrial Average down 0.13%, S&P 500 nearly flat, and Nasdaq Composite down 0.16% [1][4] Sector Performance - Semiconductor stocks performed exceptionally well, with the Philadelphia Semiconductor Index rising by 2.28% and Micron Technology's stock surging nearly 10% [1][5] - The healthcare sector added 124,000 jobs, double the normal level for January 2025, indicating strong growth in this industry [2] - Large tech stocks showed mixed results, with Google and Microsoft down over 2%, while Nvidia and Tesla saw gains of 0.78% and 0.8%, respectively [5] Commodity Market Movements - Gold and silver prices surged due to increased risk aversion, with spot gold rising over 1% to $5,083.7 per ounce and silver up over 4% to $84.3 per ounce [7] - International oil prices also increased, with WTI crude oil futures up 1.05% to $64.63 per barrel, driven by geopolitical tensions [8] Geopolitical Developments - U.S. President Trump emphasized the need for continued negotiations with Iran after a meeting with Israeli Prime Minister Netanyahu, indicating a preference for diplomatic solutions [9][10] - The geopolitical climate remains tense, with military deployments in the Middle East and ongoing sanctions against Iran, which could impact market stability [11][12] Semiconductor Industry Insights - South Korea's semiconductor exports reached $6.73 billion in the first ten days of February, a year-on-year increase of 137.6%, reflecting strong global demand [13] - Micron Technology's stock price target was raised significantly by Morgan Stanley, indicating confidence in the company's future performance amid supply shortages [6][13] - The semiconductor industry is transitioning from quarterly business to long-term collaborative agreements, driven by increasing demand for advanced memory chips [14]