ServiceNow CEO Halts Stock Sales to Reassure Investors Worried About AI Impact

Deep News
Feb 18

ServiceNow is among the enterprise software companies whose shares have dropped significantly this year due to concerns about artificial intelligence. The company's executives are now taking steps to calm market anxieties. According to a regulatory filing, CEO Bill McDermott and other senior leaders have agreed to cancel previously scheduled stock sale plans. Additionally, McDermott plans to purchase $3 million worth of ServiceNow shares later this month. Despite a broader sell-off in the enterprise software sector that has pushed the stock down more than 25% since the start of the year, these moves are intended to reassure investors that ServiceNow's fundamentals remain strong. The company recently announced a $5 billion stock buyback program a few weeks ago to further boost investor confidence. McDermott is one of the first enterprise software CEOs this year to cancel prearranged stock trading plans, raising questions about whether other industry leaders will follow suit. Some investors are concerned that AI could disrupt traditional per-user software licensing models, allowing businesses to reduce software spending by building their own functions and applications.

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