ServiceNow's stock experienced a significant decline, dropping 5%, following a downgrade to 'Sell' by Guggenheim. The downgrade, which set a price target of $640, was driven by concerns over the company's performance in the second half of 2024, despite expectations for a satisfactory second quarter. The stock, which trades at a high valuation of 15 times enterprise value to next twelve months' recurring revenue, is seen as facing material risk. ServiceNow anticipates an uptick in GenAI business, but this has not alleviated concerns. The company is set to report its second-quarter earnings on July 24. This downgrade has impacted the broader software market, with notable declines in other software stocks such as Salesforce, Snowflake, MongoDB, and Workday.