ServiceNow Stock and 4 More AI Losers to Consider Buying Now
Contrarian opportunities in software & services amid AI disruption fears.
Why Look at AI ‘Losers’?
Artificial intelligence has minted clear market winners. But fear of disruption has pushed several high‑quality software and services names to multi‑year valuation lows. For patient investors, these dislocations can become attractive entry points.
- Integration moats can protect incumbent platforms (ServiceNow, Salesforce).
- AI augments, not replaces, compliance‑heavy functions (Sage, FactSet).
- Efficiency upside from AI can expand margins even in people‑first models (ABM).
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YTD Price Performance (%): Watchlist
Figures are directional based on the provided script: ServiceNow (≈−10%), Salesforce (≈−1% since Aug), Sage (≈−15%), FactSet (≈−40%).
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Valuation Snapshot: Forward/Est. P/E
From script: ABM ≈ 12x (2025E), FactSet ≈ 16x, Sage ≈ 23x (2026E). Lower multiples can imply skepticism—and potential for rerating.
ServiceNow (NOW)
Set‑up: Workflow automation leader under pressure on fears that gen‑AI can self‑build workflows.
- Why the dip: Shares ≈ −10% YTD amid disruption narrative.
- Contrarian view: Deep enterprise integration and embedded AI copilots make the platform stickier.
- Watch: AI adoption within existing modules; renewal rates; expansion into non‑IT workflows.
Salesforce (CRM)
Set‑up: Global CRM platform with vast proprietary customer data.
- Why the hesitation: Flat since Aug as chatbots hype raises substitution fears.
- Contrarian view: High switching costs; Einstein AI inside core apps; data gravity advantage.
- Watch: Net revenue retention, seat growth, AI‑driven up‑sell attach.
Sage Group (SGE.L / SGPYY)
Set‑up: Accounting & payroll for SMBs; compliance‑heavy, sticky use cases.
- Why it’s discounted: ≈ −15% (LSE) / −8.5% (US ADR) amid “AI can do bookkeeping” fears.
- Contrarian view: AI is a feature within secure platforms; trades ≈ 23× 2026E—discount vs peers.
- Watch: Cloud migration pace, ARPU, competitive posture vs. Intuit.
FactSet (FDS)
Set‑up: Financial data & analytics provider embedded in institutional workflows.
- Why the crash: ≈ −40% YTD; fears that gen‑AI makes paid data obsolete; now ≈ 16× earnings (15‑yr low).
- Contrarian view: Compliance and audit needs require trusted, integrated data sources; banks adopt slowly.
- Watch: Retention, module expansion, LLM partnerships, pricing resilience.
ABM Industries (ABM)
Set‑up: Facility services—maintenance, engineering, janitorial. Market fears robotics/AI automation.
- Valuation: ≈ 12× 2025E P/E; market cap ≈ $3B (small‑cap).
- Contrarian view: “People‑led” core remains; AI boosts routing, scheduling, lead gen → margin upside.
- Watch: Contract wins, margin trajectory, pilot deployments of AI/robotics for efficiency.
Risk Checklist
| Risk | How It Hurts | What to Monitor |
|---|---|---|
| Faster‑than‑expected AI substitution | Compression of growth and multiples in software/services. | Customer churn, slower expansion, negative pricing pressure. |
| AI‑native competitors | Feature leapfrogging and lower TCO narratives. | Win/loss rates, product roadmap velocity, partner ecosystems. |
| Valuation traps | “Cheap gets cheaper” if earnings reset lower. | Guide-downs, margin deterioration, deferred AI monetization. |
Position sizing and diversification matter—especially in contrarian strategies.
Takeaway Playbook
- ServiceNow / Salesforce: Integration moats + embedded AI → durable, compounding platforms.
- Sage: Compliance‑centric workflows + discount multiple → re‑rating optionality.
- FactSet: Trusted data + slow‑moving clients → panic‑driven entry point.
- ABM: People‑first model + AI efficiencies → stealth margin expansion.
ServiceNow Stock and 4 More AI Losers to Consider Buying Now
Introduction: The Other Side of the AI Trade
Artificial intelligence has been the biggest market driver of 2025.
Chipmakers like Nvidia and Broadcom, alongside hyperscalers Microsoft, Alphabet, Meta Platforms, and Oracle, have surged an average of nearly 40% this year, powered by AI demand.
But there’s another side of the AI story—companies that investors fear will be disrupted or replaced by AI. These “AI losers” have seen their stock prices decline sharply, even as their financial performance has held steady or improved.
Contrarian investors know that moments of fear often create opportunity. In this blog post, we’ll analyze five such companies:
- ServiceNow (NOW)
- Salesforce (CRM)
- Sage Group (SGE.L / SGPYY)
- FactSet Research Systems (FDS)
- ABM Industries (ABM)
Each faces skepticism about how AI will reshape their industries. But as we’ll see, their long-term potential may be far brighter than the market currently believes.
The AI Winners vs. the AI Losers
Let’s start by contrasting the two camps.
The Winners
The market has rewarded companies that build AI infrastructure:
- Nvidia: Dominant supplier of GPUs, riding an unprecedented demand wave.
- Broadcom: Key chip supplier for networking and custom AI silicon.
- Microsoft, Alphabet, Meta: Cloud hyperscalers with massive AI training and inference demand.
- Oracle: Leveraging AI workloads to boost its cloud business.
These stocks have become market darlings, with investors piling in on AI hype and earnings strength.
The Losers
By contrast, software and services companies seen as replaceable by AI are being punished:
- Adobe has fallen 20% despite 36% net income growth.
- ServiceNow, Salesforce, and Sage Group are under pressure, with markets fearing AI could automate their services.
- FactSet and other data-heavy firms face questions about whether ChatGPT-style tools will make them obsolete.
- Even low-tech service companies like ABM Industries are dragged into the conversation.
But are these fears justified—or are they oversold?
ServiceNow (NOW): A Cloud Platform Evolving With AI
ServiceNow is a cloud software platform best known for workflow automation and IT service management. Its customers use it to streamline everything from IT tickets to HR requests and supply chain workflows.
Why the Stock is Down
- Shares have dropped over 10% this year, even as demand for digital workflow solutions remains strong.
- Investor fears center on the idea that AI could build workflow automation on its own, making ServiceNow’s platform less relevant.
Why the Market Might Be Wrong
- Integration moat: ServiceNow is deeply integrated into enterprise IT stacks, with sticky, recurring revenue.
- AI complement, not replacement: The company is embedding generative AI into its platform, enabling “AI copilots” that make workflows faster, not obsolete.
- Customer adoption: Enterprises are not racing to build their own AI workflow systems. Instead, they want AI built into trusted platforms.
Investment Case
At current valuations, ServiceNow offers contrarian upside. As adoption of AI-enhanced workflow automation grows, the company may benefit rather than suffer.
Salesforce (CRM): Still the King of CRM
Salesforce is the world’s leading customer relationship management (CRM) software provider. It powers sales, service, and marketing automation for millions of businesses worldwide.
Why Investors Are Nervous
- Shares are down about 1% since August, underperforming AI peers.
- The fear: AI chatbots could manage sales and customer service on their own, reducing the need for Salesforce tools.
Why the Fears Are Overblown
- Data gravity: Salesforce holds immense amounts of customer and business data. That data is the raw material AI needs.
- Einstein AI: Salesforce has already launched its own AI assistant, embedded directly into its CRM tools.
- Enterprise inertia: Large corporations won’t rip out Salesforce overnight. Switching costs are high, and Salesforce continues to expand into analytics and integration.
Investment Case
Salesforce trades at a discount relative to its growth potential, especially if its AI tools improve customer engagement. For long-term investors, it remains a cornerstone SaaS stock with AI upside.
Sage Group (SGE.L / SGPYY): The Underappreciated Accounting Player
Sage is a U.K.-based software firm specializing in accounting, payroll, and financial software for small and medium-sized businesses.
Why the Stock is Down
- Shares are down 15% on the London Stock Exchange and 8.5% in U.S. trading.
- Skepticism stems from fears that AI could automate basic bookkeeping functions, threatening Sage’s core business.
Why the Market is Missing the Story
- Sticky customers: Once small businesses adopt Sage for accounting and payroll, switching is painful.
- AI tools are a feature, not a substitute: AI may help automate repetitive tasks, but compliance, payroll, and tax reporting still require structured systems.
- Valuation discount: Sage trades at 23x 2026 earnings estimates, a discount to both Intuit (INTU) and its own historical averages.
Investment Case
For investors seeking exposure to affordable international software stocks, Sage offers value and stability. If AI enhances rather than disrupts its offerings, Sage could re-rate upward.
FactSet Research Systems (FDS): Oversold in the AI Panic
FactSet provides financial data and analytics to investment managers, banks, and advisors. It competes with Bloomberg, Refinitiv, and S&P Global.
Why the Stock Has Crashed
- Shares are down over 40% this year.
- FactSet now trades at just 16x earnings estimates—a 15-year low.
- Investors fear that AI-powered tools like ChatGPT will make paid financial data subscriptions unnecessary.
Why the Fear is Overdone
- Regulatory and workflow complexity: Financial firms can’t rely solely on open AI tools. Compliance, data accuracy, and auditability matter.
- Deep integration: FactSet is embedded in clients’ trading, research, and reporting workflows. Replacing it isn’t simple.
- UBS upgrade: Analyst Alex Kramm recently upgraded FactSet to a Buy, noting that banks are slow adopters of disruptive tech and will stick with trusted providers.
Investment Case
For contrarians, FactSet looks compelling. A profitable, sticky business trading at a historic valuation discount is often a recipe for long-term returns.
ABM Industries (ABM): The Low-Tech Contrarian Play
ABM Industries provides facility management services—maintenance, engineering, janitorial, and related services. It’s not a high-tech company, but AI still looms over its future.
Investor Concerns
- Skeptics argue that AI and robotics could automate facility management tasks, reducing demand for ABM’s labor-intensive business.
- The stock trades at a modest 12x 2025 earnings estimates.
Why the Concerns Are Misguided
- People-first model: As CEO Scott Salmirs said, “AI will not disintermediate ABM’s core, people-led business.
- AI as a helper, not a replacement: AI and robotics can help optimize schedules, reduce waste, and improve efficiency—but they can’t replace the human element in maintenance and engineering.
- Margin expansion potential: If AI helps ABM cut costs and generate new leads, profit margins could expand.
Investment Case
ABM is a small-cap stock (~$3 billion market cap) with overlooked potential. If AI enhances efficiency rather than eliminates jobs, ABM could quietly deliver outsized gains.
The Bigger Picture: Contrarian AI Investing
The AI revolution is creating winners and losers in real time. But the story isn’t as simple as “chips win, software loses.”
Three Contrarian Lessons
- Integration is everything: Companies like ServiceNow and FactSet are embedded into workflows. AI won’t erase that overnight.
- AI as augmentation, not substitution: For Salesforce, Sage, and ABM, AI can improve efficiency and outcomes without destroying demand.
- Valuations matter: The “AI losers” trade at discounts—some at decade-long lows. If sentiment shifts, these could offer outsized upside.
Why Contrarian Bets Pay Off
- Market narratives often overshoot reality.
- In 2000, internet “losers” like Amazon and Apple were written off. Twenty years later, they became trillion-dollar giants.
- Today’s AI “losers” may similarly be tomorrow’s AI-enabled winners.
Risks to Consider
No investment thesis is without risks. For these AI contrarian bets, investors should watch:
- Pace of AI adoption: If enterprises adopt generative AI faster than expected, disruption risks rise.
- Competitive landscape: New entrants may challenge incumbents in data and workflow automation.
- Valuation traps: Just because a stock is cheap doesn’t mean it can’t get cheaper. Investors need patience and risk tolerance.
Conclusion: The Underdogs of the AI Revolution
The spotlight is firmly on Nvidia, Microsoft, and the AI infrastructure giants. But in the shadows, companies like ServiceNow, Salesforce, Sage Group, FactSet, and ABM Industries are trading at discounts amid investor skepticism.
History shows that markets often overestimate short-term disruption and underestimate long-term resilience.
For patient contrarian investors, today’s AI “losers” could be tomorrow’s comeback stories.
Quick Summary (for Skimmers)
- ServiceNow (NOW): Down 10% YTD; AI integration makes workflows stronger.
- Salesforce (CRM): Data-rich CRM leader embedding AI into its ecosystem.
- Sage Group (SGE.L): Valuation discount vs. Intuit; AI enhances small business adoption.
- FactSet (FDS): 40% drop; deeply integrated in financial workflows, oversold.
- ABM Industries (ABM): Low-tech, people-led services; AI helps efficiency, not replaces.
Contrarian investors looking for undervalued AI plays should keep these names on their radar.
🎙️ ServiceNow Stock and 4 More AI Losers to Consider Buying Now
Let me ask you this:
What if I told you that some of the best opportunities in artificial intelligence aren’t in the obvious winners like Nvidia or Microsoft… but in the so-called losers?
Yes, the very stocks that Wall Street has been dumping this year — companies that investors believe AI will disrupt or even destroy — might actually be the most attractive investments for long-term contrarians.
Today, we’re going to talk about five of these underdog stocks:
- ServiceNow
- Salesforce
- Sage Group
- FactSet Research Systems
- ABM Industries
They’ve all taken a hit because of AI fears. But when you peel back the layers, you start to see that the fears may be exaggerated, the risks misunderstood, and the upside underappreciated.
So grab your coffee, because this is going to be a deep dive into contrarian AI investing — and why betting on the underdogs could be the smarter play.
Segment 1: Setting the Stage — AI Winners vs. AI Losers
Let’s zoom out first.
In 2025, the stock market will be dominated by a handful of AI winners: Nvidia, Broadcom, Microsoft, Alphabet, Meta, and Oracle.
Together, these six stocks are up about 40% on average this year. And the reason is simple — they are the backbone of AI infrastructure. Nvidia makes the GPUs. Microsoft and Google run the hyperscale cloud. Meta and Oracle are aggressively pivoting into AI workloads.
Investors love these stories. They’re clean, they’re easy to understand, and they’re backed up by earnings.
But here’s the thing: not everyone can be a winner.
While these names grab the spotlight, a quieter story is unfolding. Dozens of companies — many of them in software and services — are being punished because investors fear AI will eat their business models alive.
Think about Adobe. The company is a household name in creative software. Yet its stock is down 20% this year, even though net income is up 36%. Why? Because investors worry that AI can now generate images, videos, and designs, undercutting Adobe’s tools.
That’s the paradox of 2025: AI is creating both massive winners and dramatic losers at the same time.
And that’s where contrarian opportunity comes in.
Segment 2: ServiceNow (NOW) — The Workflow Giant
Let’s start with ServiceNow.
This is a cloud software platform that helps enterprises automate workflows — things like IT service requests, HR forms, and even supply chain processes.
Now, ServiceNow stock is down more than 10% this year. Why? Investors think AI will replace its platform. After all, if ChatGPT can generate code or automate workflows, do you still need ServiceNow?
Here’s why I think that view is shortsighted:
- Integration moat: ServiceNow isn’t just a tool; it’s part of the backbone of enterprise IT. Rip it out, and you’re asking a Fortune 500 company to overhaul its entire workflow system. That’s not happening overnight.
- AI complement, not replacement: ServiceNow is embedding AI directly into its platform. Think of AI copilots that automatically route IT tickets or pre-fill HR requests. Instead of replacing ServiceNow, AI makes it more valuable.
- Enterprise inertia: Big companies move slowly. They don’t experiment with untested AI workflows on mission-critical processes. They stick with trusted platforms.
So, while ServiceNow looks like an “AI loser” today, it’s really positioned to ride the AI wave as customers adopt AI features built into its trusted ecosystem.
For long-term investors, that 10% dip might look more like an entry point than a warning sign.
Segment 3: Salesforce (CRM) — Still the King of CRM
Next up, Salesforce.
The company that basically invented the modern concept of CRM — customer relationship management. Sales, service, marketing all run on Salesforce.
Yet the stock is flat, down about 1% since August. The concern? That AI chatbots and virtual agents will take over the job of sales and support, making Salesforce irrelevant.
But let’s take a closer look:
- Data gravity: Salesforce owns mountains of customer data — the kind of data AI feeds on. If anything, Salesforce is in the perfect position to monetize AI.
- Einstein AI: Salesforce already launched its AI assistant, “Einstein.” It can draft emails, summarize calls, and recommend next best actions — all inside the Salesforce ecosystem.
- High switching costs: No large enterprise is abandoning Salesforce just because a chatbot exists. The platform is too deeply embedded.
The way I see it, Salesforce is like a landlord in the digital economy. Businesses can’t function without their CRM systems. And when AI becomes critical, guess what? They’ll want AI inside the systems they already use, not in some standalone chatbot.
That makes Salesforce less of an AI loser — and more of a sleeping AI winner.
Segment 4: Sage Group — The International Underdog
Now let’s cross the Atlantic and talk about Sage Group, a U.K.-based accounting and payroll software company.
Its shares are down 15% in London and about 8.5% in U.S. trading this year. Investors are worried that AI can automate bookkeeping and payroll — core Sage functions.
But here’s the contrarian case:
- Stickiness: Once a small business adopts Sage, they rarely leaves. Accounting and payroll systems are too tightly tied to compliance and taxes.
- AI as a feature, not a substitute: Yes, AI can generate invoices or reconcile receipts. But payroll and compliance require accuracy and integration with government systems. That’s where Sage shines.
- Valuation discount: Sage trades at 23 times 2026 earnings, cheaper than Intuit and below its own five-year average.
So you’ve got a global software provider, in a sticky business, trading at a discount. That’s exactly the kind of profile contrarian investors should love.
Segment 5: FactSet Research Systems — Misunderstood Data Provider
Let’s turn to FactSet Research Systems, the financial data provider.
FactSet’s stock has fallen off a cliff — down more than 40% this year. It now trades at 16 times earnings, its lowest valuation in 15 years.
The fear? That AI tools like ChatGPT will give away financial data for free, rendering FactSet obsolete.
But let’s reality-check that:
- Regulation: Financial firms can’t rely on free AI tools for compliance and audit purposes. They need verified, auditable data streams.
- Integration: FactSet is deeply integrated into client workflows. Traders, analysts, and bankers don’t just pull data — they rely on FactSet’s analytics and models.
- Analyst support: UBS recently upgraded FactSet to a Buy, arguing that fears are overdone. Banks move slowly, and FactSet is still a trusted partner.
In short, FactSet isn’t going away. If anything, it’s been oversold. Contrarians who buy here could be getting a world-class data provider at a bargain price.
Segment 6: ABM Industries — The Low-Tech Play
And finally, let’s talk about a company you might not expect in an AI discussion: ABM Industries.
ABM provides facility management — janitorial services, engineering, and maintenance. It’s not a flashy tech name. But investors worry that robotics and AI could automate cleaning and maintenance, hurting ABM’s labor-driven business.
Here’s why that concern may be overblown:
- People-first business: ABM’s CEO said it himself — “AI will not disintermediate” their core business. You still need people for most facility work.
- AI as an efficiency tool: Where AI can help is in optimizing schedules, reducing waste, and generating new leads. That boosts profit margins instead of killing demand.
- Valuation: ABM trades at just 12 times 2025 earnings, with a market cap under $3 billion. That’s cheap for a company with stable revenue and the potential for AI-driven efficiency gains.
So, while Wall Street yawns at ABM, it could quietly deliver steady returns — the kind contrarians love.
Segment 7: The Bigger Picture — Why Contrarians Win
What do all these companies have in common?
They’re being painted with the broad brush of “AI disruption.” Investors assume AI will replace them, so they sell first and ask questions later.
But as history shows, markets often overestimate short-term disruption and underestimate long-term adaptation.
Remember 2000? Everyone said Amazon was doomed when the dot-com bubble burst. Apple was struggling to survive. Both were written off as losers. Two decades later, they’re trillion-dollar giants.
The same could happen here. Today’s AI losers may be tomorrow’s AI-enabled winners.
Segment 8: Risks to Watch
Of course, no contrarian play is risk-free. Here are the big ones to consider:
- Faster AI adoption: If enterprises adopt AI faster than expected, disruption risk rises.
- Competitive threats: Startups may emerge that challenge incumbents with AI-native solutions.
- Valuation traps: Just because a stock looks cheap doesn’t mean it won’t go cheaper. Patience is required.
That’s why position sizing and diversification are critical when betting on contrarian plays.
Segment 9: Actionable Takeaways
So, what’s the playbook here?
- If you’re looking for AI-enhanced workflow winners, consider ServiceNow.
- If you want a CRM powerhouse with data advantage, look at Salesforce.
- For international value, Sage Group is worth a look.
- If you like deeply discounted data providers, FactSet is compelling.
- And if you want a low-tech contrarian, ABM offers quite an upside.
The key is not to chase hype but to find value where others see fear.
Closing Thoughts
AI is the defining theme of this market cycle. But it’s not just about the obvious winners.
Sometimes the best opportunities lie in the overlooked, the underappreciated, and yes — the so-called losers.
As contrarians, our job is to separate real risk from imagined fear, and to see value where the crowd sees only danger.
So, next time someone tells you AI is going to destroy ServiceNow, Salesforce, Sage, FactSet, or ABM… remember that history is filled with companies that adapted, survived, and thrived when the world thought they were finished.
That’s the opportunity. That’s the contrarian edge.
🎙️ And that wraps up today’s episode. If you enjoyed this deep dive into contrarian AI investing, make sure to subscribe, leave a review, and share it with a friend who loves finding hidden gems in the market. Until next time, stay contrarian, stay curious, and keep investing smart.