Apple Partners with Google on AI, Market Response Positive
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 25 2026
0mins
Should l Buy NOW?
Source: CNBC
- Market Sentiment Shift: Despite prevailing short-term pessimism, Apple's partnership with Google on AI is seen as a positive signal that could drive a rebound in Apple's stock price, especially ahead of upcoming earnings reports.
- Product Innovation Potential: The iPhone 17 is regarded as a breakout product, demonstrating strong market demand despite supply chain challenges, indicating Apple's continued competitiveness in the high-end smartphone market.
- Industry Dynamics Impact: The weak stock performance of Meta and Microsoft, coupled with skepticism about their AI strategies, may provide Apple with a relative advantage, attracting investor attention to its growth opportunities.
- Investor Confidence Restoration: With ongoing market focus on AI demand, Apple's AI solutions are viewed as a key factor in enhancing the company's long-term value, potentially drawing more capital into tech stocks.
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 104.040
Low
172.00
Averages
222.81
High
263.00
Current: 104.040
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Release Schedule: ServiceNow announced it will release its financial results for the first quarter ended March 31, 2026, after market close on April 22, 2026, reflecting the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host a conference call at 2 p.m. Pacific Time (21:00 GMT) on the same day, providing an opportunity for real-time discussion of financial results, thereby enhancing investor engagement.
- Access Information: Investors can join the call by dialing (888) 330-2455 or (240) 789-2717, ensuring that global investors can easily access information, which demonstrates the company's focus on its worldwide investor base.
- Replay Availability: An audio replay will be available two hours after the call and accessible for 30 days, further enhancing information accessibility and transparency, helping investors better understand the company's financial performance.
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- Strategic Acquisition: Morgan Stanley analyst Keith Weiss highlights that ServiceNow's acquisition of Armis will significantly enhance its market positioning in operational technology, broadening the Total Addressable Market (TAM) and strengthening the company's competitive edge in a rapidly growing sector.
- Data Integration: Armis will provide robust physical asset data to ServiceNow's Configuration Management Database (CMDB), enhancing its end-to-end workflow capabilities and enabling enterprises to better integrate digital and physical environments, thereby optimizing existing solutions and security capabilities.
- Solution Enhancement: This acquisition will close the visibility gap in physical assets for ServiceNow, boost the physical asset library, and improve existing solutions and security capabilities, particularly in areas like IT Asset Management (ITAM) and IT Service Management (ITSM).
- Market Opportunity Expansion: Although operational technology has contributed less to ServiceNow in recent years, the addition of Armis will present new growth opportunities, helping the company better meet customer demands during their digital transformation journeys.
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- Price Volatility Analysis: The IYW ETF has a 52-week low of $117.55 and a high of $211.98, with the last trade at $182.53, indicating significant fluctuations over the past year that could influence investor decisions and market sentiment.
- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, helping them assess market trends and potential buy or sell opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the fund's liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding helps identify ETFs experiencing notable inflows (new units created) or outflows (old units destroyed), as these liquidity shifts can affect the performance of individual stocks held within the ETFs.
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- Price Target Adjustment: Stifel has lowered its price target for ServiceNow from $180 to $135, primarily due to seasonally slow first-quarter performance and reduced spending by the U.S. federal government, while still maintaining a Buy rating, indicating confidence in the company's long-term prospects.
- Federal Revenue Outlook: Analysts noted a significant year-over-year decline in federal business, excluding Department of Defense data, compared to a strong 30% growth last year, suggesting management's revenue expectations may have been overly optimistic, impacting market confidence.
- Quarterly Performance Forecast: The expected cRPO growth for Q1 2026 is around 19.5%, below last quarter's 100 basis points, reflecting a modest start to enterprise business and weak U.S. federal data, which may raise concerns about future performance.
- Earnings Release Schedule: ServiceNow plans to release its Q1 2026 financial results post-market on April 22, with consensus estimates expecting adjusted earnings per share of $0.97 and revenue of $3.75 billion, indicating potential growth despite ongoing pressures.
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- Market Sentiment Decline: Despite overall market stability, software stocks faced a severe downturn in Q1 2026, with the iShares Expanded Tech-Software Sector ETF (IGV) dropping over 24%, marking the worst quarterly performance since the 2008 financial crisis and indicating a valuation reassessment across the industry.
- Big Players Hit Hard: Major companies like Salesforce (CRM) and ServiceNow (NOW) saw declines exceeding 30% in Q1, while Workday plummeted nearly 40%, illustrating that even established firms are not immune to market pressures, leading to capital shifting towards energy and AI chip stocks.
- Impact of AI Technology: The emergence of advanced AI agents such as Anthropic's Claude Cowork and OpenClaw raises concerns about diminishing demand for traditional enterprise software, prompting software companies to invest heavily in AI infrastructure; however, tightening profit margins are causing investor skepticism regarding near-term returns.
- Diverging Analyst Opinions: Despite bearish market sentiment, Dan Ives from Wedbush Securities argues that the decline in software stocks is excessive, asserting that AI will drive increased spending in the enterprise software market, suggesting that the current downturn may present a buying opportunity.
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- ServiceNow Stock Performance: ServiceNow's shares have dropped 34% over the past year and 32% year-to-date, although analysts have raised earnings estimates three times in the last 60 days for 2026, indicating a bullish outlook for the company.
- Salesforce Valuation Analysis: Salesforce's stock has decreased by 12% over the last five years and 29.5% year-to-date, with a forward P/E of 14.1, which is considered a value indicator, and earnings are expected to rise by 4.6% in fiscal 2027.
- Palantir Stock Dynamics: Palantir has surged 528% in the last five years but has seen a 17.7% decline year-to-date in 2026, with a forward P/E of 104.9 indicating it is still perceived as overvalued, despite expected earnings growth of 74.7% in 2026.
- Adobe Price Trends: Adobe's shares have fallen 49% over the past five years and 31% year-to-date, currently trading at a forward P/E of 10.3, with earnings expected to rise by 12.3% in 2026, highlighting its attractiveness in the current market environment.
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