Software Sell-Off Deepens April 24: ServiceNow Drops 18% (Largest Single-Day Ever) as Sector Rout Widens

GuruFocus·high signal

ServiceNow shares plummeted approximately 18% on April 24 — its largest single-day drop ever — as the combined impact of ServiceNow and IBM Q1 earnings reports cascaded into the broadest software sector sell-off of 2026. J.P. Morgan Research called it 'broken logic,' arguing markets are conflating AI-as-threat with AI-as-revenue-driver when companies like IBM just proved 40%+ AI revenue growth. The iShares software ETF (IGV) is now down over 21% YTD, with institutional investors debating whether this is a structural reset or a buying opportunity.