ServiceNow (NYSE:NOW) Plummets 6.3% on AI Replacement Outlook

ServiceNow (NYSE:NOW) closed 6.3% lower after the AI replacement narrative intensified with the simultaneous release of Anthropic’s Claude Opus 4.6 and OpenAI’s Frontier platform. These agents demonstrate agentic coding, auditing, and patching, and bypass traditional CRMs to perform enterprise work, threatening legacy licensing and recurring revenue. The reaction reflects a “basket-style” sell-off in the Magnificent Seven and the S&P 500 Information Technology sector, which fell 2.9% on the day. ServiceNow is down 30.2% YTD and 50.8% from its 52-week high of $208.94 (through July 2025), trading at $102.88 per share. A $1,000 investment is now worth $872.01.