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Service Today (NYSE: NOW) shares crashed early Tuesday, never found their foothold and ended the day down more than 13% on the heels of some cautious comments about the economy from Chief Executive Bill McDermott.
Investors retrieved ServiceNow (NOW) at work after McDermott said in an interview with CNBC on Monday that issues such as rising interest rates, rising energy costs, the war between Ukraine and Russia could have an impact soon time in the enterprise spending plans of many businesses.
Brad Reback, of Stifel, said these issues are “likely to be felt throughout [software] group ”and that may have a record of“ downward estimation of changes ”in software revenues and revenue expectations.
Shares of ServiceNow (NOW) have fallen more than 34% this year.
Led by ServiceNow (NOW), other cloud-based software companies also struggled on Tuesday. Shares on Workday (WDAY) fell more than 5%, Salesforce (CRM) dropped by almost 5%, Freshworks (FRSH) gave up by almost 12%, Adobe (ADBE) fell by 2% and the day ended of Microsoft (MSFT) by more than 4%.
Microsoft (MSFT) also confirmed that it has launched a round of job cuts that come to approximately 1% of the company’s workforce.