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NOW Analysis: ServiceNow's $109 Billion SaaS Empire Is Down 51% From Its High — Why the AI Panic Selloff Ignores $4.6 Billion in Free Cash Flow

ServiceNow (NYSE: NOW) has been caught in the crossfire of the 2026 software selloff, plunging from its 52-week high of $211.48 to just $104.27 — a staggering 51% decline that has wiped roughly $115 billion in market capitalisation from one of enterprise software's most dominant franchises. The stock now trades 25% below its 50-day moving average and 41% below its 200-day average, levels that suggest capitulation rather than orderly repricing. Yet the business underneath the stock tells a radically different story. ServiceNow posted $13.3 billion in revenue for fiscal year 2025, up approximately 23% year-over-year, while generating $5.4 billion in operating cash flow and $4.6 billion in free cash flow — both records. The company ended the year with $6.3 billion in cash and investments against just $3.2 billion in total debt, maintaining a net cash position. The disconnect between ServiceNow's operational execution and its stock price creates a compelling analytical case. Unusual options activity — put volume surged 69% above average on February 20 — suggests institutional hedging is intensifying, but for long-term investors willing to look past the AI disruption narrative, NOW's valuation has compressed to levels not seen since the pandemic recovery.

ServiceNowNOW stock analysisSaaS stocks

PLTR Analysis: The AI Operating System — Why Palantir's 34% Pullback From Highs Masks a Company Entering Hyper-Profitability

Palantir Technologies (NASDAQ: PLTR) just filed what may be the most important earnings report in its 22-year history — and the market barely noticed. On February 17, 2026, the company reported Q4 2025 revenue of $1.41 billion, a 59% year-over-year acceleration that pushed full-year revenue to $4.48 billion and operating margins above 40% for the first time. The stock sits at $137.15, up 3.1% on Wednesday following a Mizuho upgrade to Overweight with a $195 price target, yet still 34% below its 52-week high of $207.52. The disconnect between Palantir's fundamental trajectory and its current price creates a rare analytical puzzle. This is a company generating $2.1 billion in annual free cash flow, sitting on $7.2 billion in cash and investments with virtually no debt, and accelerating revenue growth in an environment where most enterprise software names are decelerating. Yet the stock trades at 217x trailing earnings — a valuation that demands not just strong execution, but sustained hypergrowth for years to come. The bull case is straightforward: Palantir's Artificial Intelligence Platform (AIP) and Ontology framework are becoming the de facto operating system for enterprises deploying agentic AI in production, a market with no clear second-place competitor. The bear case is equally clear: at 300x trailing sales, any stumble in growth or margin expansion gets punished severely. After analyzing the latest financials, competitive dynamics, and forward estimates, here is what individual investors need to know about owning Palantir at $137.

Palantir TechnologiesPLTRAI platform

MSFT Analysis: The Most Under-Owned Megacap — Why Microsoft's 28% Pullback From Highs May Be the AI Era's Best Risk-Reward Setup

Microsoft Corporation (NASDAQ: MSFT) trades at $401.65 as of February 18, 2026 — a striking 28% below its 52-week high of $555.45 and well under both its 50-day moving average of $460.94 and 200-day average of $487.38. For a company generating over $305 billion in trailing twelve-month revenue and posting consistent double-digit growth, the disconnect between fundamentals and price action is notable. Morgan Stanley recently called Microsoft "the most under-owned megacap" on Wall Street, a rare label for a company with a $2.98 trillion market capitalization. The pullback has been driven by a broader tech sector correction fueled by AI disruption fears and investor concerns about the staggering capital expenditure required to build out generative AI infrastructure. Microsoft pledged $50 billion for Global South AI expansion alone, on top of tens of billions already committed to Azure data centers. Yet the most recent quarter — fiscal Q2 2026 ending December 2025 — delivered $81.3 billion in revenue, a 16% year-over-year increase, with diluted EPS of $5.16 and operating margins expanding to 47.1%. These are not the numbers of a company in crisis. The central question for investors is whether Microsoft's massive AI capital cycle will generate returns commensurate with the investment, or whether rising depreciation and capex will structurally compress free cash flow. With the stock trading at 25x trailing earnings — its cheapest valuation in over two years — the market appears to be pricing in meaningful risk. This analysis examines whether that risk is adequately rewarded.

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