Stock Price & Analysis

Based on the provided data, ServiceNow (NOW) is showing positive momentum with strong technical and fundamental indicators. Let me analyze the key aspects:

Technical Analysis

The stock is currently trading at $1071.48, showing an upward trend with a +1.35% gain in the last regular trading session. The stock has maintained support above its 20-day moving average of $1064.60, indicating short-term bullish momentum.

Recent Developments

• ServiceNow recently acquired Cuein, an AI-based conversation data analysis firm, to enhance its AI capabilities. This strategic move aims to strengthen its AI agents' functionality in analyzing customer interactions.
• The company has received strong analyst support, with multiple firms raising their price targets:
  • Goldman Sachs: $1,200 (17.12% upside)
  • Piper Sandler: $1,200 (11.42% upside)
  • RBC Capital: $1,210 (12.34% upside)

Analyst Consensus

The majority of analysts maintain a bullish stance on NOW, with recent price targets ranging from $1,150 to $1,300. Key factors driving their optimism include:

• Strong AI product cycle with Pro+
• Healthy consumer spending and market positioning
• Upcoming release of new data-oriented solutions in early 2025

Valuation

Conclusion Based on the technical strength, positive analyst sentiment, and strategic AI initiatives, NOW stock appears to be a buy at current levels. The company's recent acquisition and strong institutional backing suggest continued upward momentum.

Based on the provided data and references, here's a comprehensive analysis for NOW stock price prediction in 2025:

ServiceNow (NOW) is projected to reach $1,360 by the end of 2025, driven by strong AI momentum and expanding profit margins. The stock's robust growth trajectory is supported by its successful GenAI monetization and workflow automation solutions, which are becoming clear C-suite priorities. The company's expansion into AI through Now Assist and Platform Xanadu, coupled with its growing international presence, suggests continued upward momentum.

The technical analysis shows NOW currently trading around $1,125, with strong support at the fibonacci level of $1,072.56 and resistance at $1,162.71, indicating a bullish trend continuation pattern.

The S1 support level for NOW Stock is $1016.84 ,The R1 resistant level for NOW Stock is $1128.28.

As of the end of day on 2025-01-24, the price of NOW Stock was $1125.

The target price for NOW Stock according to analyst rating is 1,136, with the highest price target at 1,300 and the lowest at 913.00. Analysts have a Strong Buy rating on NOW Stock overall.

The market cap of NOW is $231.7B.

Based on the provided data and current market conditions, let's analyze if NOW is overvalued:

Technical Analysis

ServiceNow is currently trading at $1,124.98, showing significant momentum with the stock near its 52-week high of $1,157.90. The stock has maintained a strong upward trend despite recent market volatility.

Valuation Metrics

The stock appears overvalued based on several key metrics:

1. Forward P/E ratio of 64.18, significantly higher than the industry average of 27.56

2. PEG ratio of 2.6, slightly above the industry average of 2.55, indicating premium pricing even when accounting for growth

3. EV/EBITDA of 98.92, suggesting an expensive valuation compared to historical averages

Analyst Sentiment

Recent analyst actions raise concerns:

• Guggenheim analyst John Difucci reiterates a Strong Sell rating with a $716 price target, implying 36.37% downside
• Morgan Stanley downgraded the stock to Equal Weight from Overweight with a $960 price target

Conclusion

ServiceNow is currently overvalued based on traditional metrics and showing signs of stretched valuations. While the company demonstrates strong growth with projected 21.3% revenue increase, the current valuation multiples are excessive even accounting for this growth trajectory. The significant divergence between bullish and bearish analyst targets ($716-$1,332) indicates high uncertainty about the stock's fair value.

ServiceNow, Inc. is a digital workflow company. The Company’s intelligent platform, the Now Platform, is a cloud-based solution with embedded artificial intelligence and machine learning capabilities that helps global enterprises across industries, universities and governments unify and digitize their workflows. The Company's workflow applications built on the Now Platform are organized in four primary areas, such as technology, customer and industry, employee, and creator. Its technology workflows empower information technology (IT) departments to plan, build, operate and service the IT needs of the business enterprise. Its customer and industry workflows help organizations reimagine the customer experience and customer loyalty. Its employee workflows help customers simplify how their employees access services they need, creating a consumer-like experience. Its creator workflows enable customers to create, test, and deploy their own applications on the Now Platform.

Based on the provided data and market analysis, here is the price prediction for ServiceNow (NOW) stock by 2030:

ServiceNow's stock is projected to reach approximately $2,800-3,200 by 2030, driven by its expanding AI capabilities and workflow automation leadership. The company's recent launch of GenAI platform Now Assist and Platform Xanadu positions it strongly in the growing AI market, with management expecting their Total Addressable Market (TAM) to double to $500 billion.

The stock's robust growth trajectory is supported by multiple catalysts including international expansion opportunities (currently only 64% revenue from North America), significant customer penetration potential (only 16% of 50,000 total addressable customers), and strong partner ecosystem including NVIDIA and Google.

NOW has a total of 22668 employees.