1 Growth Stock Down 30% in 2026 to Buy and Hold
The Motley Fool
by newsfeedback@fool.com (Geoffrey Seiler)February 19, 2026
AI-Generated Deep Dive Summary
The article highlights that ServiceNow, a leading software-as-a-service (SaaS) company, has seen its stock drop by 30% in 2026 amid a broader SaaS sell-off. Despite the market trading near record highs, fears of artificial intelligence (AI) disrupting traditional SaaS business models have caused investor concern. Many SaaS companies rely on "seat-based" pricing, where revenue is tied to the number of users accessing their platforms. However, as AI technology becomes more prevalent, there is a belief that customers may require fewer seat licenses, potentially reducing demand for such services.
The article explains that while AI could eventually shift the industry toward consumption-based pricing models, this transition is still in its early stages. ServiceNow, like other SaaS companies, has been impacted by this sell-off, but it remains attractive to long-term investors. The company's resilience and adaptability position it as a potential growth stock despite current market challenges.
For finance and investing readers, the article underscores the importance of identifying undervalued opportunities during market downturns. While fears of AI disruption loom large, they also create chances for savvy investors to pick stocks like ServiceNow that are likely to recover or even thrive in the long run. The article serves as a reminder that not all sectors are equally affected by market trends and that strategic investing can yield rewards when patience and insight guide decisions.
In conclusion, the article paints a picture of a SaaS sector under duress but with potential for rebound. It emphasizes the need to look beyond short-term volatility and consider the long-term growth prospects of companies like ServiceNow. For those interested in finance and investing, this provides valuable insights into navigating market uncertainties and identifying stocks poised for recovery.
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Originally published on The Motley Fool on 2/19/2026