NYSE:NOW

Servicenow (NOW)

134.21
-7.05 (4.99%)
as of Sep 8, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconSep 9, 2026, 12:00 am

This summary was created by AI, based on 38 opinions in the last 12 months.

ServiceNow (NOW) is currently experiencing a mixed outlook from analysts and investors, largely influenced by evolving perceptions about AI's role in enterprise software. With the company recently reporting strong earnings growth, including a revenue beat and optimistic future projections, sentiments have shifted positively despite lingering market concerns about its valuation and the broader software sector's challenges. While some analysts see potential in investing now, citing a low price-to-earnings ratio compared to historical standards and robust revenue growth, others remain cautious, expressing worries about being late in the market cycle and the potential risks from AI-driven competition. The stock has shown volatility, with a significant year-to-date decline, but many believe it is at an inflection point, particularly given its strategic integration of AI into their platform, suggesting a path forward that could lead to rebounds in value.

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Consensus
Mixed
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Valuation
Fair Value
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MSFT
BUY
They continue to expand and make businesses more expensive. Likes it even though the stock is expensive.
BUY
Actually, cloud stocks have held up relatively well compared to tech. In less than two months, shares have gone from $406 to $490, but remains over $200 from its peak. Business is good and NOW is actually profitable.
PAST TOP PICK
(A Top Pick Aug 04/21, Down 24%) Down 24%, which sounds ugly, but it's actually the best-looking one in the crowd. Long runway to the price target. If you think that a year from now, inflation and rates will have calmed down, the tech sector will be led by the likes of this company. Profitable, free cashflow. 99% contract renewal rate. (Analysts’ price target is $625.00)
BUY ON WEAKNESS
Cloud stocks have been beaten these, but some actually make money. NOW has fallen $707 from last November to below $500 today. Business is terrific. In April, they delivered a solid quarter, bullish outlook and raised their long-term subscription revenue target. Share are up $90 in recent weeks.
TOP PICK
A brave choice, as it's on the SaaS side. So much value here. A leader in workflow automation and machine learning. CEO is a driven management guy. Buy in thirds here at $414, 400, and 390. 12-month target of $650. No dividend. (Analysts’ price target is $648.60)
COMMENT
A tough one. They had the best quarter of the large tech companies and they keep winning new contracts. But in this bear market, NOW gets no credit.
WEAK BUY
Cloud computing for digitization of workflow. Has done well. Great growth potential and free cashflow growth. He accesses the cloud instead through MSFT, GOOGL, and AMZN. Cloud will continue to grow considerably, though not as fast as during Covid. Increased competition means own the bigger players.
BUY
It reported last Wednesday. This cloud computing could do no wrong until the Fed announced it will raise rates. Shares were $707 in November then fell to $484 and yet nothing had happened at the company. Then they delivered a great, sterling quarter and forecast. Billings and EPS beat the street. Meanwhile, analysts havecut NOW's price targets! Shares still rose, though it may have discouraged buyer.
BUY
Tim Collins, a technical analysts, is bullish cloud stocks. It's recently pulled back from recent highs in a "flag pattern" or "continuation pattern" which means that consolidating, a stock will resume its march higher. Before this consolidation happened, NOW was nicely moving higher, then POW in August an explosion to the upside. Recently it's declined with lower highs and lower lows over a few weeks. But in last week's rally, NOW broke until its old ceiling of resistance has become its new floor of support. Collins sees new resistance at $680, its old all-time high. If it doesn't break out, this could fall to $630-650. Below $610, he'll exit. But if it holds current support, this will head higher.
TOP PICK

King of incident reporting in digital workflows. The next Salesforce. Beat on all metrics. Buy some here, and add some down at $560 and 540. 12-month price target of $660. No dividend. (Analysts’ price target is $654.77)

BUY ON WEAKNESS
Buy. Great CEO and they have tons in the pipeline and lots of deals are doing well. Shares have come down, so buy now.
PAST TOP PICK
(A Top Pick May 06/20, Up 31%) Fantastic company, but still in the group of rich valuations for SaaS. Getting worldwide acceptance. 12-month price target of $618.
BUY
Develops cloud computing platforms to manage data flow. Got expensive, but beat top and bottom lines in January and increased guidance. Good execution by management. He took profits, but then added last week around $475. Price target of $593.
BUY
Fractional shares to buy instead of playing the short squeeze of GameStop, AMC, etc. A cloud stock. The new CEO has a great rolodex.
BUY
Cloud stocks are recovering after dipping in the wake of vaccine announcements last month. When SN reported in late October the stock got slammed though it has performed well YTD. The outlook into 2021 looks good.
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