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Based in Santa Clara, California, ServiceNow, Inc. (NOW) is a powerhouse in the enterprise cloud computing industry, known for its innovative platform that streamlines and automates business workflows. With a market cap of $145.38 billion, ServiceNow is a dominant player in the software space, consistently pushing the boundaries of digital transformation. Competing fiercely with other technology behemoths, ServiceNow's primary competitors include Salesforce, Inc. (CRM), renowned for its comprehensive customer relationship management solutions.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and ServiceNow fits this criterion perfectly, signifying its substantial size, stability, and dominance in the software industry. Renowned for its cutting-edge enterprise cloud solutions, NOW is at the forefront of digital workflow innovation with its Now Platform.
Shares of NOW are currently trading 12.7% below their 52-week high of $815.32, which they hit on Feb. 9. Also, NOW has declined 5.9% over the past three months, underperforming the S&P 500 Index’s ($SPX) 5% returns over the same time frame.
In the longer term, NOW is up marginally on a YTD basis, and the shares are now holding onto a solid gain of 33.3% over the past 52 weeks. In comparison, the S&P 500 has gained 12.7% in 2024 and 25% over the past year.
To confirm the recent bearish price trend, NOW has been trading below its 50-day moving average since late May.
ServiceNow reported its Q1 results on Apr. 24. Following the earnings release, NOW shares saw a marginal gain but a 4% decline the following day. The company reported a profit of $347 million for the quarter, translating to $1.67 per share. Adjusted for one-time items, earnings were $3.41 per share, surpassing Wall Street expectations of $3.15 per share. Its revenue for the period was $2.6 billion, exceeding the forecasted $2.59 billion.
Highlighting the contrast in performance, rival Salesforce has underperformed—not just NOW but also the S&P 500. CRM stock has declined 8.4% on a YTD basis.
Analysts are optimistic about NOW's prospects despite the weak price performance. The stock has a consensus rating of "Strong Buy" from 33 analysts in coverage. The mean price target of $828.70 reflects a 16.4% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
