NOW, TEAM, DUOL Stocks Hit 52-Week Lows: What's Driving The Selloff?

• NOW, TEAM, and DUOL hit fresh multi-year lows on Wednesday.
• Investors continue to rotate their money out of SAAS stocks and into defensive sectors.
• Stocktwits sentiment for NOW and TEAM improved, while DUOL’s remained bearish.

ServiceNow, Inc., Atlassian Corp. Plc, and Duolingo, Inc., declined on Wednesday to fresh multi-year intraday lows despite the broader market rising sharply on a ceasefire agreement between the United States and Iran.

Software stocks declined broadly, with Intuit, Inc. and Adobe, Inc. falling 5% and 0.4% respectively.

What's Driving NOW, TEAM, DUOL Lower?

ServiceNow shares declined 3.1% to $97.47, their lowest level since May 2023; they are now down about 60% from their April 2025 peak.

The selloff appeared to be part of an ongoing rotation, with investors trimming exposure to Software-as-a-Service (SaaS) stocks and shifting into defensive sectors such as consumer staples, energy, and utilities, amid fears that new AI tools could erode demand for niche software.

“ServiceNow and Salesforce... ouch.. these stocks are just being knocked over mercilessly,” CNBC’s Jim Cramer said in an X post.

However, debate over whether software stocks have bottomed out is picking up, with some arguing a rebound could be on the horizon for select names. Wedbush peddled the view recently and said that Microsoft, Salesforce and ServiceNow stand out as having disconnected sell-offs relative to their AI monetization opportunities over the coming years.

However, analysts continue to adjust their targets. ServiceNow saw its price targets reduced by BTIG ($185 from $200) and Stifel ($135 from $180) in the past few days, with analysts citing weak checks for the last quarter.

Atlassian shares dropped 2% to $63.62, their lowest level since July 2018. TEAM stock was among the top losers in the Nasdaq-100 index last year. Last month, Atlassian said it would cut about 10% of its workforce as part of a reorganization aimed at prioritizing areas such as AI development and enterprise sales, while multiple analysts have lowered their price targets on the stock in recent weeks.

Duolingo shares declined 5.4% to $91.06 to their lowest point since March 2023. The stock is down a staggering 82% since its peak in May last year.

Last week, Argus downgraded DUOL stock to ‘Hold’ from ‘Buy,’ saying that the company's new strategy focused on increasing daily average users over monetization, is likely to pressure bookings and limit revenue growth in the near term.

Investors are also focused on Duolingo’s expansion beyond language learning into areas such as chess, math, and music courses.

What Retail Traders Think About NOW, TEAM, DUOL?

On Stocktwits, the retail sentiment for NOW has ticked up sharply in the last two days and was ‘extremely bullish’ late Wednesday, with a trader calling the slide a “phenomenal buying opportunity.”

Similarly, the sentiment for DUOL shifted to ‘bullish’ from ‘neutral,’ although some traders appeared skeptical about the prospects. One wrote: “$DUOL unless this company dramatically changes and adopts more AI tech and figures out a way to compete with existing AI technology systems, gradually replacing translator services, I think this company is going to turn into the next BlackBerry post Apple iPhone.”

The sentiment for TEAM remained ‘bearish’, unchanged since the start of this month.

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