Stock Price & Analysis

Based on the technical indicators and recent price action, ServiceNow (NOW) stock shows bearish signals in the short term, with RSI at 31.12 indicating oversold conditions and MACD trending negative at -28.52.

The stock closed at $938.41 on Friday with a -3.05% decline during regular trading hours. The current price sits below both the 5-day ($975.53) and 20-day ($1029.04) moving averages, suggesting downward momentum.

However, ServiceNow maintains strong fundamental momentum according to recent analysis, receiving a top 100% rating from Validea's Twin Momentum Investor model based on both price and fundamental momentum in the Software & Programming industry.

Technical Outlook:

• Price is trading near the lower Bollinger Band ($843.24), suggesting potential oversold conditions
• Fibonacci support levels at $946.31 (S1) and $920.50 (S2)
• Volume increased to 2 million shares on Friday's decline, showing selling pressure

Options Activity: Recent options data shows notable put activity at the $940 strike for February 2025 expiration, indicating some bearish sentiment among derivatives traders.

Based on the current technical setup and short-term bearish momentum, selling NOW stock appears to be the prudent action at current levels. Consider waiting for price stabilization above the 5-day moving average ($975.53) before establishing new long positions.

Based on the provided data and context, I'll analyze ServiceNow's (NOW) price prediction for 2025.

Technical Analysis

The stock is currently trading at $937.79, showing a significant decline of -3.12% in the last trading session. The technical indicators suggest:

• Current price is below the 5-day moving average of $975.53
• Trading below the 10-day MA of $988.87
• RSI at 31.12 indicates approaching oversold territory
• MACD showing bearish momentum with -28.52 reading

Analyst Forecasts and Price Targets

According to recent analyst reports:

• Evercore ISI maintains a Buy rating with $1,150 price target
• Bank of America Securities has a Buy rating with $1,280 target
• J.P. Morgan maintains a Buy with $1,200 target
• The consensus price target from 31 analysts is $1,129.72, suggesting a 20.47% upside potential

Growth Catalysts for 2025

1. AI Momentum:

• 150% quarter-on-quarter growth in agentic AI adoption
• AI implementation driving 20% productivity increases across sales, customer service, HR and IT support
• 16x improvement in sales prospect conversion rates

2. Financial Outlook:

• Q1 2025 subscription revenue guidance: $2.995-3.0 billion
• Full-year 2025 subscription revenue forecast: $12.635-12.675 billion
• Board authorized additional $3 billion share repurchase program

Price Prediction Scenarios for 2025

Based on analyst forecasts and technical analysis, here are the potential scenarios:

Bullish Case ($1,300-1,400):

• Successful AI monetization acceleration
• Better-than-expected subscription revenue growth
• Probability: 35%

Base Case ($1,000-1,200):

• In-line with guidance execution
• Steady AI adoption growth
• Probability: 45%

Bearish Case ($800-900):

• FX headwinds impact
• Slower AI monetization
• Probability: 20%

Conclusion

The most likely scenario points to NOW reaching $1,100-1,200 by end of 2025, representing ~15-25% upside from current levels. This is supported by:

• Strong AI adoption momentum
• Robust subscription revenue growth
• Positive analyst sentiment
• Healthy balance sheet with share buyback support

The S1 support level for NOW Stock is $916.43 ,The R1 resistant level for NOW Stock is $1010.52.

As of the end of day on 2025-02-26, the price of NOW Stock was $927.6.

The target price for NOW Stock according to analyst rating is 1,194, with the highest price target at 1,426 and the lowest at 716.00. Analysts have a Strong Buy rating on NOW Stock overall.

The market cap of NOW is $190.0B.

Based on the provided data and recent market developments, here's a comprehensive analysis of NOW's valuation:

Technical Analysis

Current Valuation Metrics

• P/E (TTM): 83.91x (down from 243.16x in 2022)
• EV/EBITDA: 106.83x (up from 95.99x in 2022)
• P/S: 16.19x (up from 10.91x in 2022)
• P/B: 18.96x (up from 15.65x in 2022)

Growth & Profitability Analysis

• Revenue Growth: 23.48% YoY
• Net Margin: 12.99% (significant improvement)
• ROE: 4.06% (below industry average)
• ROA: 1.98% (above industry average)

Recent Performance & Analyst Sentiment

According to recent analyst coverage:

• 26 out of 28 analysts maintain bullish/somewhat bullish ratings
• Average price target: $1,211.82
• High target: $1,432.00
• Low target: $716.00

Overvaluation Assessment NOW appears overvalued for these key reasons:

1. Premium Multiples: The current P/E of 83.91x and P/S of 16.19x are significantly above market averages, even for high-growth software companies.

2. Technical Warning Signs: Recent technical analysis shows bearish momentum divergence and breakdown below key support levels.

3. Valuation Expansion: Despite improved fundamentals, valuation multiples have expanded considerably, with P/S ratio increasing by 48% since 2022.

4. Growth-Value Mismatch: While revenue growth is strong at 23.48%, the current valuation multiples suggest the market is pricing in even higher growth rates.

5. Recent Price Action: Technical analysis indicates potential further downside, with next support around $852.

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 analysis, here is a price prediction for ServiceNow (NOW) stock by 2030:

ServiceNow stock is projected to reach $1,850-$2,000 by 2030, driven by continued dominance in digital workflow solutions and enterprise IT operations management. The company's strong revenue growth trajectory (currently over 88% from digital workflow products) and expanding market opportunities in AI-powered enterprise automation support this bullish outlook.

The stock's technical indicators and fundamental metrics suggest a compound annual growth rate (CAGR) of approximately 15-17% through 2030, supported by the company's high gross margins, strong cash flow generation, and leadership position in digital transformation solutions.

NOW has a total of 22668 employees.