ServiceNow Inc is trading 4.2% down at $98.72 today after the company confirmed a security vulnerability may have allowed unauthorized access to customer data. The disclosure is compounding pressure from a broader sell-off in the software sector.
- ServiceNow notified some customers about a software bug that could allow an unauthenticated user to access data on their platform. [4, 5] While a security update was applied on June 5, the company has reportedly observed "anomalous activity" and is now notifying affected customers. [5]
- The negative company-specific news is exacerbating a broader multi-day slide in high-valuation AI and software stocks, which have been falling due to investor concerns about rich valuations and a potential AI investment bubble. [2, 9, 17]