Software stocks just had their best month since 2001 — buy the AI-fueled comeback in ServiceNow, Snowflake, and Okta
Software stocks just had their best month since 2001. Fears that AI would wipe out software companies have faded after strong earnings from Snowflake, Okta, and ServiceNow showed AI is actually boosting their business.
Idea
Earlier this year, many investors worried AI would make traditional software companies obsolete — the so-called 'SaaSpocalypse.' But this month's earnings tell the opposite story: AI is driving more demand for identity management (Okta), cloud data (Snowflake), and enterprise automation (ServiceNow). ServiceNow is up 40% this month alone. When an entire sector goes from feared to favored this fast, big institutional fund managers who had avoided the group start buying back in — and that creates a second wave of demand that can push prices even higher.