AI & SaaS demand: Adobe-Topaz M&A, Salesforce, CrowdStrike, Workday, Meta capex, OpenAI delay, Meta cloud pivot, Palantir valuation, Alphabet/MSFT earnings previews, FactSet-Google partnership, IBM quantum, agentic AI disruption, ServiceNow counterpoint, SentinelOne M&A speculation
Key Questions
Why did ServiceNow stock fall sharply despite strong subscription growth?
ServiceNow dropped 47% even as subscription revenue rose 19% and the Now Assist target increased 50%. The decline serves as a counterpoint to narratives that AI will eliminate SaaS demand.
What setbacks has Salesforce encountered with its AI products?
Salesforce faces dual AI product launch delays that could affect near-term revenue. Competitive pressure and performance issues are cited as contributing factors.
Which stocks did Citi highlight as buys ahead of earnings?
Citi named Palantir and Microsoft as attractive buys. Palantir shows 85% Q1 revenue growth while Microsoft trades at a 22.2x P/E despite an $37B AI run rate.
What are the earnings preview highlights for Alphabet and Microsoft?
Alphabet is expected to report $2.86 EPS (+23.8% YoY) with over $100B in planned capex. Microsoft is projected at $4.21 EPS (+15.3% YoY) with a Strong Buy consensus.
When will Meta begin production of its Iris AI chip?
Meta plans to start Iris AI chip production in September. The initiative supports doubling computing capacity and reducing external hardware dependence.
What analyst actions occurred around CrowdStrike and Cloudflare?
Rosenblatt maintained a Buy rating on CrowdStrike but lowered the price target to $206 after the 4-for-1 split. Cloudflare received multiple price target hikes citing 30% expected revenue growth.
What is the projected impact of agentic AI on SaaS spending?
Gartner forecasts agentic AI will disrupt $234B in SaaS spending by 2030. Cheap code generation is offset by higher long-term ownership costs.
Which companies are speculated as potential acquirers of SentinelOne?
Cisco, Alphabet, Amazon, and Microsoft are named as possible buyers. SentinelOne has $1.16B ARR, 23% growth, and zero debt.
ServiceNow's 47% drop despite 19% sub growth and Now Assist target raised 50% is a strong counterpoint to the 'AI kills SaaS' narrative. Salesforce faces dual AI product launch setbacks, impacting near-term revenue growth and investor sentiment. Citi names Palantir and Microsoft as buys ahead of earnings—Palantir's 85% Q1 rev growth and Golden Dome project, Microsoft cheap at 22.2 P/E. Alphabet earnings preview: $2.86 EPS estimate (+23.8% YoY), $100B+ capex plan. Microsoft earnings preview: $4.21 EPS (+15.3% YoY), Strong Buy consensus. MSFT down 37% from highs despite 18% rev growth and $37B AI run rate. Adobe acquires Topaz Labs. Salesforce Agentforce ARR $1.2B. CrowdStrike stock split 4:1, new Buy rating; CRWD fell 6% on profit-taking after 52-week high; Rosenblatt cuts PT to $206 (stock-split adjustment, Buy maintained). Meta plans cloud business, Iris chip entering production in September. Meta launches first paid coding model (Muse Spark 1.1). AI stocks diverging: chip suppliers beating Big Tech in June 2026 selloff. BofA reiterates Buy on Meta with $835 PT. FactSet Q3: AI-driven ASV acceleration. S&P Global: 81% of AI-related rating actions positive. Dell raised AI server guidance. Toast Q1 strong. FactSet partners with Google Cloud to embed Gemini agents into financial workflows. IBM confirms first quantum computer for India by Sept 2026. Arista Networks 35% revenue growth, 1.6T switch launch. Washington Ratepayer Protection Act could increase hyperscaler capex costs. Oracle FY26 record revenue $638B backlog but -60% stock drop on CapEx explosion. Big Tech AI capex to hit 3.2% of US GDP by 2027. PANW hits record high on upgrades. CRWD Barclays Overweight but overvaluation flagged. Gartner forecasts agentic AI to disrupt $234B in SaaS spending by 2030. SaaS Reckoning: AI's cheap code hides expensive ownership costs. Marvell Technology earnings preview. Microsoft shifting to in-house MAI models for Office 365. SAP stock down on geopolitical sell-off and AI pivot risks. Datadog bearish analysis. Fortinet mixed signals. Seagate upgraded. CommVault earnings call transcript. TSMC guidance hike on July 16 is a key catalyst. Mistral ships robotics model, $400M ARR, $23B valuation, open-weight release. Big Tech AI capex spending is just starting—Alphabet, Microsoft, Amazon, Meta set to report massive increases; memory/component inflation driving costs higher. Cloudflare's Workers platform and Monetization Gateway gaining traction; Scotiabank upgrade, 34% revenue growth, AI traffic monetization underappreciated; earnings preview with analyst upgrades (30% growth expected). SentinelOne M&A speculation with Cisco, Alphabet, Amazon, Microsoft as potential buyers ($1.16B ARR, 23% growth, zero debt).