A Better Newspaper

## Overview Software stocks sold off sharply following earnings news from IBM and ServiceNow that investors interpreted as signaling an AI-driven competitive threat to traditional enterprise software business models (Michael Burry's Substack, April 23). ## Key Details - The sell-off was tied specifically to earnings reports from **IBM** and **ServiceNow**, which investors read as evidence that AI could disrupt established software revenue models (Trading Post Thursday, April 23). - Commentary came from investor Michael Burry's "Trading Post Thursday" newsletter, which has become a notable voice in tracking market reactions to AI-related risk (Trading Post Thursday, April 23). ## Why It Matters This reflects a growing investor narrative that generative AI and agentic AI tools could cannibalize legacy enterprise software revenue (seat-based SaaS models, IT service management, etc.), a theme relevant to ongoing coverage of ServiceNow's own AI product overhaul and broader enterprise AI adoption trends. Expect continued volatility in software equities tied to AI capability announcements and earnings commentary. ## Related Entities - **IBM** – earnings cited as catalyst - **ServiceNow** – earnings cited as catalyst; see existing page on ServiceNow's AI Product Suite Overhaul - **Michael Burry** – investor commentator flagging the trend ## Status Developing narrative as of April 23, 2026; likely to recur with subsequent earnings cycles.