ServiceNow to Acquire Cybersecurity Startup Armis for $7.75 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Should l Buy NOW?
Source: CNBC
- Acquisition Announcement: ServiceNow revealed plans to acquire cybersecurity startup Armis for $7.75 billion, with the deal expected to close next year, aimed at enhancing its cybersecurity offerings and strengthening market competitiveness.
- Stock Price Reaction: Following the acquisition announcement, ServiceNow's shares fell nearly 3%, reflecting market concerns over the high acquisition cost, which may impact the company's short-term financial performance.
- Mining Stocks Rally: With gold, silver, and copper prices hitting record highs, mining stocks such as Freeport McMoRan, Foran Mining, and Taseko Mines rose nearly 3%, indicating optimistic market sentiment towards mining investments.
- Novo Nordisk Drug Approval: Novo Nordisk's GLP-1 pill received FDA approval, leading to an 8% increase in its stock price, providing a new oral treatment option for obesity patients, which could drive future sales growth for the company.
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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: 107.370
Low
172.00
Averages
222.81
High
263.00
Current: 107.370
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.
Three Growth Stocks to Buy After Recent Sell-Offs
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- ServiceNow Market Rebound: ServiceNow's stock is nearly 50% below its record high from last summer, yet CEO Bill McDermott emphasized in the Q4 earnings call that enterprise AI will be a major driver of the multi-trillion-dollar investment cycle, and he personally invested $3 million in company stock, reflecting confidence in future growth.
- Toast Expansion Momentum: Toast's stock has plummeted 44% since August 2025, but it added 30,000 new restaurant clients in 2025, with 8,000 in Q4, and its annual recurring revenue (ARR) grew 26% year-over-year to $2 billion, indicating strong growth potential in the restaurant sector.
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- AI Revolution Outlook: Analyst Dan Ives emphasizes that the AI revolution is still in its early stages, expected to unfold over a 10-year growth cycle, and while short-term challenges may arise, ServiceNow is poised to benefit.
- Misguided Short-term Concerns: Despite the recent sell-off impacting ServiceNow's stock, analysts believe the market is overly focused on short-term risks, overlooking the company's long-term growth potential and key advantages.
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See More
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- Netflix's Strong Performance: Netflix generated $12 billion in revenue in Q4, a 17% year-over-year increase, driving a 30% rise in EPS to $0.56, with 70% of analysts rating it a buy and a price target of $111, indicating a potential upside of 43%.
- Booking Holdings' Robust Results: Booking Holdings announced a 25-for-1 stock split, with Q4 revenue growing 16% to $6.3 billion and EPS up 38% to $44.22; 77% of analysts rated it a buy, with an average price target of $5,915, suggesting a 45% upside.
- ServiceNow's Continued Growth: ServiceNow's Q4 revenue rose 21% year-over-year to $3.53 billion, with adjusted EPS increasing 24% to $0.92; 91% of analysts rated it a buy, with a price target of $189, indicating an 81% potential upside.
See More
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- DoorDash Business Growth: DoorDash's stock has fallen approximately 38% since October 2025; however, its Q4 revenue surged 38% year-over-year to $29.7 billion, with earnings soaring 51% to $213 million, demonstrating strong performance in its diversified business, particularly in third-party retailer fulfillment services.
- ServiceNow Market Rebound: ServiceNow's stock is nearly 50% below its record high from last summer, yet CEO Bill McDermott emphasized in the Q4 earnings call that enterprise AI will be a major driver of the multi-trillion-dollar investment cycle, and he personally invested $3 million in company stock, reflecting confidence in future growth.
- Toast Expansion Momentum: Toast's stock has plummeted 44% since August 2025, but it added 30,000 new restaurant clients in 2025, with 8,000 in Q4, and its annual recurring revenue (ARR) grew 26% year-over-year to $2 billion, indicating strong growth potential in the restaurant sector.
- Valuation Appeal: Despite market pressures, Toast's price-to-earnings growth (PEG) ratio is only 0.25, suggesting an attractive valuation, and the company is expanding into new verticals like food and beverage retail, further enhancing its competitive position in the market.
See More
US Peace Corps Launches Tech Corps Initiative
- Tech Corps Initiative: The White House has announced the establishment of a 'Tech Corps' within the Peace Corps, aimed at promoting the application of American AI abroad by recruiting tech-skilled volunteers, which is expected to positively impact the U.S.'s influence in the global tech landscape.
- Volunteer Recruitment and Training: The new Tech Corps will recruit engineers and STEM graduates to provide 'last-mile' support for implementing American AI solutions in partner nations, which is anticipated to enhance their technological capabilities in sectors like agriculture, education, and economic development.
- International Cooperation and Investment: The launch of the Tech Corps aligns with the U.S. AI Exports Program, expected to attract participation from countries like India, further solidifying the U.S.'s leadership in advanced technologies while fostering tech collaboration and investment with other nations.
- Service Duration and Benefits: Tech Corps volunteers will serve abroad for 12 to 27 months, receiving benefits such as housing, healthcare, and living stipends, with on-ground deployments expected to begin in fall 2026, reflecting the U.S.'s long-term commitment to promoting AI technology globally.
See More
Risks of Private Equity and Private Debt
- Market Confidence Erosion: The stocks of private equity firms like KKR, Blackstone, and Apollo have dropped between 20% and 21% year-to-date, reflecting a decline in investor confidence regarding their future profitability, which could impact their financing capabilities and market position.
- Blue Owl Capital Crisis: Blue Owl's stock, OWL, has fallen over 27% this year due to its suspension of regular redemptions on certain funds, raising investor concerns about its ability to fulfill capital commitments, potentially triggering broader market panic.
- Rising Credit Risks: The opacity of the private credit market, particularly loans to small and medium-sized enterprises, has increased skepticism about the credit quality of these
See More
ServiceNow Readded to AI Investment List by Wedbush
- Market Rebound Expectation: Wedbush has re-added ServiceNow (NYSE:NOW) to its IVES AI 30 list, arguing that the recent sell-off in software stocks has been excessive, indicating a market undervaluation of the company’s potential.
- AI Revolution Outlook: Analyst Dan Ives emphasizes that the AI revolution is still in its early stages, expected to unfold over a 10-year growth cycle, and while short-term challenges may arise, ServiceNow is poised to benefit.
- Misguided Short-term Concerns: Despite the recent sell-off impacting ServiceNow's stock, analysts believe the market is overly focused on short-term risks, overlooking the company's long-term growth potential and key advantages.
- Cloud Service Advantage: ServiceNow offers cloud-based and AI-embedded end-to-end workflow automation solutions, and as a company founded in 2004, its positioning in enterprise services enhances its competitiveness in the AI era.
See More
Stock Splits Captivate Investors Amid Strong Performance
- Trend of Stock Splits: Stock splits have captured investor interest in recent years, typically signaling strong company performance, with historical data showing an average return of 25% in the year following a split, significantly outperforming the S&P 500's 12% average.
- Strong Performance by Netflix: Netflix's stock has surged 782% over the past decade and executed a 10-for-1 stock split last year, with fourth-quarter revenue reaching $12 billion, a 17% year-over-year increase, driving EPS up 30% to $0.56, leading analysts to favor its future outlook.
- Potential of Booking Holdings: Booking Holdings announced a 25-for-1 stock split, and despite recent stock declines due to travel slowdown fears, its fourth-quarter revenue grew 16% to $6.3 billion, with EPS rising 38% to $44.22, prompting analysts to remain optimistic about its prospects.
- Growth Outlook for ServiceNow: ServiceNow's stock has appreciated 852% over the past decade, despite a 55% drop from its peak, with fourth-quarter revenue increasing 21% year-over-year to $3.53 billion and adjusted EPS up 24% to $0.92, leading analysts to express positive views on its growth potential.
See More
Stock Splits Renew Investor Enthusiasm
- Stock Split Trend: Stock splits have regained investor interest in recent years, typically signaling strong company performance, with historical data showing an average return of 25% in the year following a split, significantly outperforming the S&P 500's 12% average.
- Netflix's Strong Performance: Netflix generated $12 billion in revenue in Q4, a 17% year-over-year increase, driving a 30% rise in EPS to $0.56, with 70% of analysts rating it a buy and a price target of $111, indicating a potential upside of 43%.
- Booking Holdings' Robust Results: Booking Holdings announced a 25-for-1 stock split, with Q4 revenue growing 16% to $6.3 billion and EPS up 38% to $44.22; 77% of analysts rated it a buy, with an average price target of $5,915, suggesting a 45% upside.
- ServiceNow's Continued Growth: ServiceNow's Q4 revenue rose 21% year-over-year to $3.53 billion, with adjusted EPS increasing 24% to $0.92; 91% of analysts rated it a buy, with a price target of $189, indicating an 81% potential upside.
See More
