ServiceNow Shares Surge 8.4% on Positive Analyst Coverage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Source: Fool
- Stock Surge: ServiceNow shares rallied approximately 8.4% on Monday to $103.54, reflecting market confidence in its growth potential despite competitive pressures from AI technologies.
- Analyst Upgrade: Bank of America analyst Tal Liani restarted coverage on ServiceNow with a Buy rating and a $130 price target, indicating strong long-term optimism for its position in the enterprise software sector.
- AI Opportunity: ServiceNow's management views AI as an opportunity rather than a threat, having launched its AI Control Tower ahead of mainstream AI agents, showcasing its proactive approach to technological adaptation.
- Future Growth Potential: Liani projects ServiceNow's revenue could grow by 18% to 22% by 2028, with free cash flow margins of 35% to 37%, potentially reaching around $22.9 billion in revenue, demonstrating its resilience in the AI era.
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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: 95.070
Low
172.00
Averages
222.81
High
263.00
Current: 95.070
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.
ServiceNow Stock Surges After Trump Investment News
- Stock Rebound: ServiceNow (NOW) surged 8.8% on Monday, closing at $103.42 and reclaiming the key $100 level for the first time in a month, marking a strong rebound with a three-day gain of 19% after months of selling pressure.
- Investor Sentiment Shift: Retail sentiment on Stocktwits shifted from 'bullish' to 'extremely bullish' following Bank of America's reinstatement of a 'Buy' rating on NOW, indicating a renewed interest in software stocks.
- AI Opportunity: Bank of America set a $130 price target for ServiceNow, implying over 20% upside from the last close, asserting that NOW is positioned to benefit from AI advancements rather than being replaced, enhancing its unique role in IT and customer workflows.
- Trump's Influence: Trump's investment of $1 million to $5 million in ServiceNow during Q1 emerged as a key catalyst for retail investor sentiment, despite NOW being down 32.3% year-to-date, highlighting potential for recovery and market interest.
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Finding Buying Opportunities Amid Market Volatility
- Market Volatility Strategy: Jim Cramer advises investors to use sharp pullbacks as buying opportunities during market volatility instead of chasing short-lived rallies, emphasizing the need to focus on the top ten largest losers in the S&P 500 for potential investments.
- Software and Hardware Rotation: The three major indexes ended mixed on Monday as investors rotated back into software stocks, with Salesforce and ServiceNow rising approximately 3.4% and 8.8%, respectively, while Nvidia fell 1.3%, indicating a market lacking clear conviction.
- Micron Investment Opportunity: Cramer highlighted Micron as a standout investment opportunity after its 6% drop on Monday, noting its reasonable valuation and critical role in AI development, with Micron currently trading at less than 12 times earnings.
- Gradual Position Building Advice: Cramer recommends that investors avoid making large purchases all at once and instead gradually build positions, suggesting buying some shares at the current price and waiting for an additional 2-3% decline to buy more, using this strategy to navigate market fluctuations.
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- Chip Stock Recommendation: Cramer specifically highlighted Micron Technology, which fell 6% on Monday, yet its reasonable valuation (below 12 times earnings) makes it an attractive investment opportunity, especially given its critical role in AI development.
- Software and Hardware Rotation: The market ended mixed on Monday, with software stocks like Salesforce and ServiceNow rising 3.4% and 8.8%, respectively, while Nvidia fell 1.3%, indicating a back-and-forth between software and hardware that reflects a lack of clear market conviction.
- Gradual Position Building Advice: Cramer recommends that investors adopt a gradual approach to buying, avoiding lump-sum purchases, and suggests waiting for an additional 2-3% decline from current levels before increasing positions to mitigate risk and optimize investment costs.
See More
Adobe and ServiceNow Stocks Underperforming
- Market Reaction: As of the afternoon of May 15, 2026, Adobe and ServiceNow saw stock declines of 3.30% and 8.91% respectively, indicating widespread market dissatisfaction that could impact investor confidence and future capital inflows.
- Investor Sentiment: Due to recent poor performance and changing market conditions, Adobe and ServiceNow are viewed as two of the least favored stocks, potentially leading to increased investor withdrawals and exacerbating downward pressure on their stock prices.
- Intensifying Competition: In the context of increasing competition within the tech sector, both Adobe and ServiceNow face strong challenges from other companies, which may lead to a decline in market share and further impact their long-term growth potential.
- Uncertain Future Outlook: Analysts maintain a cautious stance on the future performance of Adobe and ServiceNow, suggesting that restoring investor confidence and achieving stock price rebounds will require time and effective strategic adjustments.
See More
ServiceNow Shares Surge 8.4% on Positive Analyst Coverage
- Stock Surge: ServiceNow shares rallied approximately 8.4% on Monday to $103.54, reflecting market confidence in its growth potential despite competitive pressures from AI technologies.
- Analyst Upgrade: Bank of America analyst Tal Liani restarted coverage on ServiceNow with a Buy rating and a $130 price target, indicating strong long-term optimism for its position in the enterprise software sector.
- AI Opportunity: ServiceNow's management views AI as an opportunity rather than a threat, having launched its AI Control Tower ahead of mainstream AI agents, showcasing its proactive approach to technological adaptation.
- Future Growth Potential: Liani projects ServiceNow's revenue could grow by 18% to 22% by 2028, with free cash flow margins of 35% to 37%, potentially reaching around $22.9 billion in revenue, demonstrating its resilience in the AI era.
See More
Jim Cramer Gives Salesforce a Chance Amid Bearish Analyst Call
- Analyst Downgrade: Bank of America analysts have downgraded Salesforce to a sell-equivalent rating with a $160 price target, citing concerns over slowing new customer growth, weakening pricing power, and a lackluster monetization strategy for its AI product, Agentforce, which could place Salesforce at a competitive disadvantage.
- Support from Jim Cramer: Despite the bearish analyst call, Jim Cramer expressed optimism during Monday's Morning Meeting, suggesting that Salesforce's stock still has room to rebound, especially given its nearly 40% decline, and he questioned whether it is wise to sell now.
- Agentforce Market Performance: Since its launch, Salesforce's Agentforce has closed over 29,000 deals and is pacing for $800 million in annual recurring revenue, indicating strong demand, even as Benioff faces skepticism regarding the AI strategy amid fears of disruption to traditional software businesses.
- Competitive Pressure: Analysts highlighted that Salesforce is under pressure from AI code-writing tools that may lead customers to develop in-house applications, potentially impacting Salesforce's revenue model, particularly as its reliance on seat-based licenses could be challenged.
See More
ServiceNow Stock Surges After Trump Investment News
- Stock Rebound: ServiceNow (NOW) surged 8.8% on Monday, closing at $103.42 and reclaiming the key $100 level for the first time in a month, marking a strong rebound with a three-day gain of 19% after months of selling pressure.
- Investor Sentiment Shift: Retail sentiment on Stocktwits shifted from 'bullish' to 'extremely bullish' following Bank of America's reinstatement of a 'Buy' rating on NOW, indicating a renewed interest in software stocks.
- AI Opportunity: Bank of America set a $130 price target for ServiceNow, implying over 20% upside from the last close, asserting that NOW is positioned to benefit from AI advancements rather than being replaced, enhancing its unique role in IT and customer workflows.
- Trump's Influence: Trump's investment of $1 million to $5 million in ServiceNow during Q1 emerged as a key catalyst for retail investor sentiment, despite NOW being down 32.3% year-to-date, highlighting potential for recovery and market interest.
See More
Finding Buying Opportunities Amid Market Volatility
- Market Volatility Strategy: Jim Cramer advises investors to use sharp pullbacks as buying opportunities during market volatility instead of chasing short-lived rallies, emphasizing the need to focus on the top ten largest losers in the S&P 500 for potential investments.
- Software and Hardware Rotation: The three major indexes ended mixed on Monday as investors rotated back into software stocks, with Salesforce and ServiceNow rising approximately 3.4% and 8.8%, respectively, while Nvidia fell 1.3%, indicating a market lacking clear conviction.
- Micron Investment Opportunity: Cramer highlighted Micron as a standout investment opportunity after its 6% drop on Monday, noting its reasonable valuation and critical role in AI development, with Micron currently trading at less than 12 times earnings.
- Gradual Position Building Advice: Cramer recommends that investors avoid making large purchases all at once and instead gradually build positions, suggesting buying some shares at the current price and waiting for an additional 2-3% decline to buy more, using this strategy to navigate market fluctuations.
See More
Investors Should Use Market Pullbacks to Buy Quality Stocks
- Market Pullback Strategy: CNBC's Jim Cramer advises investors to selectively buy quality stocks during market pullbacks rather than chasing short-term rallies, a strategy that helps seize investment opportunities amid rapid sector rotations.
- Chip Stock Recommendation: Cramer specifically highlighted Micron Technology, which fell 6% on Monday, yet its reasonable valuation (below 12 times earnings) makes it an attractive investment opportunity, especially given its critical role in AI development.
- Software and Hardware Rotation: The market ended mixed on Monday, with software stocks like Salesforce and ServiceNow rising 3.4% and 8.8%, respectively, while Nvidia fell 1.3%, indicating a back-and-forth between software and hardware that reflects a lack of clear market conviction.
- Gradual Position Building Advice: Cramer recommends that investors adopt a gradual approach to buying, avoiding lump-sum purchases, and suggests waiting for an additional 2-3% decline from current levels before increasing positions to mitigate risk and optimize investment costs.
See More
Adobe and ServiceNow Stocks Underperforming
- Market Reaction: As of the afternoon of May 15, 2026, Adobe and ServiceNow saw stock declines of 3.30% and 8.91% respectively, indicating widespread market dissatisfaction that could impact investor confidence and future capital inflows.
- Investor Sentiment: Due to recent poor performance and changing market conditions, Adobe and ServiceNow are viewed as two of the least favored stocks, potentially leading to increased investor withdrawals and exacerbating downward pressure on their stock prices.
- Intensifying Competition: In the context of increasing competition within the tech sector, both Adobe and ServiceNow face strong challenges from other companies, which may lead to a decline in market share and further impact their long-term growth potential.
- Uncertain Future Outlook: Analysts maintain a cautious stance on the future performance of Adobe and ServiceNow, suggesting that restoring investor confidence and achieving stock price rebounds will require time and effective strategic adjustments.
See More
ServiceNow Shares Surge 8.4% on Positive Analyst Coverage
- Stock Surge: ServiceNow shares rallied approximately 8.4% on Monday to $103.54, reflecting market confidence in its growth potential despite competitive pressures from AI technologies.
- Analyst Upgrade: Bank of America analyst Tal Liani restarted coverage on ServiceNow with a Buy rating and a $130 price target, indicating strong long-term optimism for its position in the enterprise software sector.
- AI Opportunity: ServiceNow's management views AI as an opportunity rather than a threat, having launched its AI Control Tower ahead of mainstream AI agents, showcasing its proactive approach to technological adaptation.
- Future Growth Potential: Liani projects ServiceNow's revenue could grow by 18% to 22% by 2028, with free cash flow margins of 35% to 37%, potentially reaching around $22.9 billion in revenue, demonstrating its resilience in the AI era.
See More
Jim Cramer Gives Salesforce a Chance Amid Bearish Analyst Call
- Analyst Downgrade: Bank of America analysts have downgraded Salesforce to a sell-equivalent rating with a $160 price target, citing concerns over slowing new customer growth, weakening pricing power, and a lackluster monetization strategy for its AI product, Agentforce, which could place Salesforce at a competitive disadvantage.
- Support from Jim Cramer: Despite the bearish analyst call, Jim Cramer expressed optimism during Monday's Morning Meeting, suggesting that Salesforce's stock still has room to rebound, especially given its nearly 40% decline, and he questioned whether it is wise to sell now.
- Agentforce Market Performance: Since its launch, Salesforce's Agentforce has closed over 29,000 deals and is pacing for $800 million in annual recurring revenue, indicating strong demand, even as Benioff faces skepticism regarding the AI strategy amid fears of disruption to traditional software businesses.
- Competitive Pressure: Analysts highlighted that Salesforce is under pressure from AI code-writing tools that may lead customers to develop in-house applications, potentially impacting Salesforce's revenue model, particularly as its reliance on seat-based licenses could be challenged.
See More
