ServiceNow (NYSE:NOW) Trading Up 1% – What’s Next?

Shares of ServiceNow, Inc. (NYSE:NOW) traded up 1% during trading on Wednesday . The company traded as high as $111.15 and last traded at $110.91. 36,505,356 shares were traded during mid-day trading, an increase of 103% from the average session volume of 17,997,813 shares. The stock had previously closed at $109.77.

Key Stories Impacting ServiceNow

Here are the key news stories impacting ServiceNow this week:

• Positive Sentiment: Analysts remain supportive — several firms reiterated buy/outperform ratings and high price targets, framing NOW as a discounted large-cap growth opportunity after the post-earnings selloff. This institutional backing may help stabilize the stock. Article Title
• Positive Sentiment: Piper Sandler and other bulls highlight ServiceNow’s AI positioning and product momentum; such favorable notes support the view that NOW can monetize AI and justify premium multiples. Article Title
• Positive Sentiment: BTIG expects a rebound in enterprise software names (including ServiceNow), suggesting the current weakness could present a buying opportunity for long-term investors. Article Title
• Neutral Sentiment: Coverage and retail interest have spiked — Zacks flags NOW as a trending stock, which can increase short-term volume and volatility but is informational rather than directional. Article Title
• Neutral Sentiment: Investor pieces urge “buy-the-dip” based on ServiceNow’s AI revenue growth and long-term TAM, but acknowledge near-term headwinds — useful context for value-oriented investors weighing risk/reward. Article Title
• Negative Sentiment: Market-wide software panic and “SaaSpocalypse” headlines are pressuring shares; analysts and media point to renewed fears that AI could disrupt SaaS revenue models, which is a key reason for the recent selloff. Article Title
• Negative Sentiment: High-profile criticism and warnings (e.g., Jim Cramer calling the stock a “nightmare”) amplify bearish sentiment and can accelerate outflows from momentum or retail holders. Article Title
• Negative Sentiment: Security concerns: reporting on exploitable AI agents involving ServiceNow raises operational and reputational risks; any material security incidents could weigh on enterprise buying and the stock. Article Title

Analyst Ratings Changes

A number of research firms have recently issued reports on NOW. Wall Street Zen raised shares of ServiceNow from a “hold” rating to a “buy” rating in a report on Saturday, December 27th. Macquarie dropped their price target on ServiceNow from $172.00 to $140.00 and set a “neutral” rating for the company in a research note on Thursday, January 29th. Morgan Stanley set a $263.00 price objective on ServiceNow and gave the company an “overweight” rating in a research report on Thursday, October 30th. Piper Sandler restated an “overweight” rating on shares of ServiceNow in a research report on Thursday, January 29th. Finally, Zacks Research lowered ServiceNow from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 11th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $194.77.

ServiceNow Stock Up 1.0%

The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.12. The stock has a 50 day simple moving average of $147.77 and a 200 day simple moving average of $169.47. The firm has a market capitalization of $115.17 billion, a PE ratio of 66.49, a PEG ratio of 2.01 and a beta of 0.97.

ServiceNow (NYSE:NOW) last released its quarterly earnings data on Wednesday, January 28th. The information technology services provider reported $0.92 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.03. ServiceNow had a return on equity of 18.54% and a net margin of 13.16%.The firm had revenue of $3.57 billion during the quarter, compared to analyst estimates of $3.53 billion. During the same quarter in the prior year, the firm posted $0.73 earnings per share. The business’s quarterly revenue was up 20.7% compared to the same quarter last year. As a group, sell-side analysts forecast that ServiceNow, Inc. will post 8.93 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction dated Friday, November 28th. The stock was sold at an average price of $161.60, for a total transaction of $242,400.00. Following the transaction, the director owned 47,930 shares in the company, valued at $7,745,488. The trade was a 3.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Gina Mastantuono sold 2,075 shares of the company’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $170.00, for a total value of $352,750.00. Following the transaction, the chief financial officer directly owned 61,140 shares of the company’s stock, valued at $10,393,800. The trade was a 3.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 15,310 shares of company stock worth $2,533,585. 0.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ServiceNow

Hedge funds and other institutional investors have recently made changes to their positions in the business. Kilter Group LLC purchased a new stake in shares of ServiceNow in the 2nd quarter worth about $25,000. IAG Wealth Partners LLC raised its stake in ServiceNow by 200.0% in the third quarter. IAG Wealth Partners LLC now owns 27 shares of the information technology services provider’s stock worth $25,000 after buying an additional 18 shares in the last quarter. Noble Wealth Management PBC lifted its holdings in ServiceNow by 400.0% in the fourth quarter. Noble Wealth Management PBC now owns 160 shares of the information technology services provider’s stock worth $25,000 after buying an additional 128 shares during the period. Millstone Evans Group LLC lifted its holdings in ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after buying an additional 132 shares during the period. Finally, Lodestone Wealth Management LLC bought a new stake in ServiceNow during the 4th quarter valued at approximately $26,000. Institutional investors own 87.18% of the company’s stock.

About ServiceNow

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.