Enterprise cloud platform automating IT, employee, and customer workflows for large organizations.Yahoo Finance ↗servicenow.com ↗
2 takes · first discussed Mar 8, 2025 · last Jan 10, 2026
Every call, plotted at the price the day they made it.
Jason argues that Doge's revelation of massively wasteful government ServiceNow licenses (with near-zero utilization) raises questions about where government software revenue really comes from and signals potential scrutiny of government IT contracts.
Sacks highlights enterprise SaaS names including ServiceNow as underperformers, citing structural headwinds from AI disrupting per-seat pricing models and the software industrial complex contracting.
Both Jason and Sacks hold bearish views on ServiceNow, though for distinct reasons. Jason (low conviction, March 2025) focuses on government contract risk, arguing that Doge's exposure of near-zero utilization on federal ServiceNow licenses could invite serious procurement scrutiny, audits, and potential clawbacks that threaten the company's government revenue. Sacks (medium conviction, January 2026) takes a broader structural view, pointing to ServiceNow's ~30% stock decline as evidence that enterprise SaaS business models face lasting headwinds from AI disrupting per-seat pricing and a contracting software industrial complex. Together, the hosts see ServiceNow pressured from both a regulatory/political angle and a secular industry shift, with no host offering a bullish counterpoint.
Jason argues that Doge's revelation of massively wasteful government ServiceNow licenses (with near-zero utilization) raises questions about where government software revenue really comes from and signals potential scrutiny of government IT contracts.
I want an investigation into procurement. Who sold this? Who bought it? This could be a crime... If ServiceNow ever wants to work with the government again... I want them to pay us back for the unused licenses, and I want a full audit for”26:55
Sacks highlights enterprise SaaS names including ServiceNow as underperformers, citing structural headwinds from AI disrupting per-seat pricing models and the software industrial complex contracting.
ServiceNow down 30%, Workday down 18%, DocuSign down 23%, Dropbox down 9%, and Box down 6%, while the S&P was up 17%. I think it's worth highlighting, like, it was a challenging year for this enterprise SaaS business.”1:08:32