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NOW: ServiceNow's $13B Backlog Defies SaaS Crash

ServiceNow (NYSE: NOW) has been caught in the brutal SaaS selloff that has hammered enterprise software stocks since mid-2025. At $108.01 per share, NOW trades 49% below its 52-week high of $211.48 and 37% below its 200-day moving average. The "Saaspocalypse" narrative — fears that AI will cannibalize traditional SaaS subscription revenue — has dragged even the highest-quality names into deep drawdowns. Yet ServiceNow's fundamentals tell a different story. The company just posted FY2025 revenue of $13.3 billion, generated $4.6 billion in free cash flow, and sits on a $13 billion remaining performance obligation backlog that provides exceptional revenue visibility. While the market prices NOW as though AI is an existential threat, ServiceNow is arguably the enterprise SaaS company best positioned to benefit from AI adoption — its Now Platform integrates AI agents directly into enterprise workflows that are notoriously difficult to displace. With the stock trading at 24.7x free cash flow and 8.5x sales — multiples not seen since the pandemic lows — the question for investors is whether this represents a structural re-rating of SaaS or an opportunity to own one of software's most durable franchises at a meaningful discount.

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CRM Analysis: Salesforce Hits 52-Week Low Ahead of Earnings

Salesforce (NYSE: CRM) shares plunged to a fresh 52-week low of $174.57 on February 23, 2026, closing at $178.16 — down 3.8% on the day and a staggering 43% below the stock's 52-week high of $313.70. The decline hasn't been driven by deteriorating fundamentals. Instead, a broad-based SaaS sell-off, fueled by fears that AI will disrupt traditional enterprise software business models, has dragged Salesforce down alongside the entire cloud software sector. The timing makes this an especially consequential moment for investors. Salesforce reports fiscal Q4 2026 earnings on February 25 — just two days away — with analysts expecting approximately $11.2 billion in revenue. The company has delivered three consecutive quarters of revenue above $9.8 billion, expanded operating margins past 21%, and generated over $13 billion in annual free cash flow. Yet the market is pricing CRM at just 23.8x trailing earnings, its lowest valuation multiple in years. The central question facing investors is straightforward: Is Salesforce a casualty of indiscriminate sector rotation, or is the market correctly pricing in a genuine structural threat from AI-native competitors? The answer likely depends on whether Salesforce's own AI strategy — centered on its Agentforce platform — can drive the next leg of growth rather than becoming a victim of the technology it helped pioneer.

Salesforce stock analysisCRM stockSalesforce earnings