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 context, here's a price prediction analysis for NOW stock in 2025:

ServiceNow (NOW) is projected to reach $1,200-$1,300 by end of 2025, driven by strong AI integration momentum and robust enterprise demand. The company's recent acquisition of Cuein for AI-based conversation analysis capabilities and continued expansion of its AI portfolio through products like Now Assist and Platform Xanadu positions it well for sustained growth.

Key Growth Drivers:

1. AI Leadership: ServiceNow's strategic focus on AI transformation, particularly through its agentic AI developments and Xanadu platform, is gaining significant market traction. The company's AI agents are showing strong adoption with 44 clients having ACV exceeding $1M.

2. Strong Financial Performance: The company demonstrated impressive growth with:

• Revenue growth of 23.5% year-over-year
• Operating margin expansion trending above 5-year averages
• Robust free cash flow generation

3. Market Position: ServiceNow maintains its leadership in workflow automation and is successfully monetizing AI capabilities, with analysts projecting continued strong performance in 2025.

Risk Factors:

• Current valuation is at premium levels with P/E ratio of 63.94x
• Potential budget constraints under certain political scenarios
• Competitive pressure in the AI space

Conclusion: Based on technical analysis, fundamental strength, and AI momentum, NOW stock is expected to reach $1,200 by mid-2025, representing about 12% upside from current levels. The strong adoption of AI solutions and consistent execution on growth strategies support this target.

The S1 support level for NOW Stock is $1012.19 ,The R1 resistant level for NOW Stock is $1077.79.

As of the end of day on 2025-01-17, the price of NOW Stock was $1073.

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 $220.7B.

Based on the provided data and current market conditions, here's an analysis of ServiceNow's (NOW) valuation:

Current Valuation Metrics ServiceNow currently trades at elevated multiples with a P/E of 139.2x and EV/EBITDA of 98.9x in Q3 2024, indicating a rich valuation . However, there are several factors supporting these premium multiples:

Growth & Profitability Analysis

• Revenue grew consistently QoQ in 2024: $2.60B → $2.63B → $2.80B
• Net income showed strong improvement in Q3: $432M vs $262M in Q2
• Gross margins remain healthy at ~79-80%
• Net margin expanded significantly to 15.5% in Q3 from 9.9% in Q2

Key Overvaluation Indicators

1. Trading at significant premiums to historical averages and peers
2. P/S ratio of 17.8x suggests extremely high expectations
3. Limited margin for error given the rich multiples

Recent Developments

• The company recently acquired AI firm Cuein to enhance its AI capabilities
• Institutional investors like Wellcome Trust have been trimming positions
• DA Davidson analysts remain focused on monitoring/observability landscape developments

Conclusion NOW appears overvalued at current levels due to:

1. Extremely high valuation multiples relative to earnings and sales
2. Recent institutional selling despite solid fundamentals
3. High expectations already priced in, leaving little room for execution missteps
4. Premium valuation compared to software sector peers
5. Technical indicators suggesting overbought conditions

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 comprehensive analysis of available data and market research, here's 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 strategic expansion into AI through products like Now Assist and Platform Xanadu, coupled with its growing TAM of $500 billion, supports this robust growth trajectory.

The prediction is supported by ServiceNow's consistent revenue CAGR of 20-22% and expanding profit margins, with operating margins expected to reach 31.5% by 2026. The company's strong position in enterprise AI transformation and workflow automation, which are clear C-suite priorities, suggests sustained growth potential through 2030.

NOW has a total of 22668 employees.