ServiceNow (NOW) has been downgraded to Neutral from Buy by UBS, which is cutting its price target to $100 from $170 due to concerns over increased spending on non-AI software. The company, which has been a key player in the AI boom, has been under pressure after the company's shares fell 758% to close at $83.2424. Despite the downgrade, ServiceNow is not backing away from AI and has made AI a standard feature across its product portfolio. The firm expects smaller earnings beats in the coming quarters and reduced guidance, but may not be enough to excite investors due to the current environment. Despite this, the company remains committed to providing a complete AI-native experience across all products and packages.