Company Overview - ServiceNow's shares are down 11.5% amid reports of negotiations to acquire the cybersecurity firm Armis for approximately $7 billion [1] - The stock has also been downgraded, contributing to its current performance challenges [1] Market Trends - The momentum for ServiceNow appears weak, with the stock facing difficulties year-to-date and on a one-year basis, particularly in comparison to the semiconductor sector [2][3] - The technology sector is currently favoring semiconductors over software, indicating a shift in market preference [3] Strategic Moves - The potential acquisition of Armis is viewed positively as a strategic move into the cybersecurity space, which is considered a valuable area for growth [2] - The overall performance of software companies, including ServiceNow, has been under pressure relative to other sectors like semiconductors [3]