ServiceNow (NYSE:NOW) Trading Down 1.6% – Here’s Why
by Amy Steele · The Cerbat GemServiceNow, Inc. (NYSE:NOW – Get Free Report) shares fell 1.6% on Tuesday . The company traded as low as $125.03 and last traded at $125.3180. 19,556,651 shares changed hands during trading, an increase of 63% from the average session volume of 12,022,471 shares. The stock had previously closed at $127.31.
Key Headlines Impacting ServiceNow
Here are the key news stories impacting ServiceNow this week:
- Positive Sentiment: ServiceNow signed a three‑year deal to embed OpenAI models (including GPT‑5.2) into its platform to deliver agentic AI for enterprise workflows — this materially strengthens NOW’s AI value proposition and revenue roadmap. ServiceNow inks deal with OpenAI to boost its AI software stack
- Positive Sentiment: ServiceNow expanded its global Partner Program to accelerate AI agent innovation, which could speed customer adoption, broaden go‑to‑market reach, and deepen partner-led implementations. ServiceNow enhances global Partner Program to accelerate AI agent innovation
- Positive Sentiment: Analyst sentiment remains favorable: multiple firms (TD Cowen, Evercore ISI, Oppenheimer, Stifel) continue to rate NOW as Buy or highlight long‑term growth from AI, providing analyst support that could stabilize the stock. ServiceNow: Strong Execution and AI Momentum Offset M&A Concerns
- Neutral Sentiment: Market commentators note near‑term headwinds (e.g., reduced U.S. federal spend tied to contract timing and workforce changes) that could pressure growth in the short term, even as longer‑term AI opportunities remain. Stifel Sees Long-Term Value in ServiceNow (NOW) Despite Near-Term Headwinds
- Negative Sentiment: Short‑term price action has been weak: the stock has experienced a multi‑week decline to levels near its 52‑week low, prompting momentum selling and negative press coverage about the “freefall.” Here’s why the ServiceNow stock price is tanking
- Negative Sentiment: Technical and valuation headwinds — current price sits below the 50‑ and 200‑day averages and near the 52‑week low, while the stock still trades at a high P/E — increasing sensitivity to any earnings or macro misses.
Wall Street Analysts Forecast Growth
A number of research firms have recently commented on NOW. Arete upgraded ServiceNow from a “neutral” rating to a “buy” rating and set a $200.00 target price for the company in a research report on Tuesday, January 6th. DZ Bank raised shares of ServiceNow to a “strong-buy” rating in a research note on Thursday, December 18th. Piper Sandler restated an “overweight” rating and issued a $200.00 price objective (down from $230.00) on shares of ServiceNow in a report on Monday, January 5th. KeyCorp reissued an “underweight” rating on shares of ServiceNow in a research report on Friday, January 9th. Finally, Cowen restated a “buy” rating on shares of ServiceNow in a research report on Tuesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $216.11.
Read Our Latest Analysis on NOW
ServiceNow Stock Down 1.6%
The company has a debt-to-equity ratio of 0.13, a current ratio of 1.06 and a quick ratio of 1.06. The firm’s 50-day moving average price is $156.93 and its 200 day moving average price is $175.08. The firm has a market capitalization of $130.13 billion, a price-to-earnings ratio of 75.77, a price-to-earnings-growth ratio of 2.19 and a beta of 0.98.
Insiders Place Their Bets
In related news, insider Paul Fipps sold 1,525 shares of the company’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $163.51, for a total transaction of $249,352.75. Following the transaction, the insider owned 2,705 shares of the company’s stock, valued at approximately $442,294.55. This represents a 36.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Gina Mastantuono sold 2,085 shares of ServiceNow stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $161.60, for a total value of $336,936.00. Following the completion of the sale, the chief financial officer owned 63,215 shares of the company’s stock, valued at $10,215,544. This trade represents a 3.19% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 15,310 shares of company stock valued at $2,533,585. 0.34% of the stock is currently owned by insiders.
Institutional Trading of ServiceNow
Hedge funds have recently made changes to their positions in the company. Nordea Investment Management AB boosted its position in ServiceNow by 388.7% in the 4th quarter. Nordea Investment Management AB now owns 4,706,164 shares of the information technology services provider’s stock valued at $720,325,000 after buying an additional 3,743,087 shares during the last quarter. Norges Bank bought a new position in shares of ServiceNow during the second quarter worth about $2,589,235,000. SG Americas Securities LLC grew its holdings in ServiceNow by 11,128.7% in the 4th quarter. SG Americas Securities LLC now owns 1,805,467 shares of the information technology services provider’s stock worth $276,579,000 after buying an additional 1,789,388 shares in the last quarter. Aberdeen Group plc grew its position in ServiceNow by 405.0% in the 4th quarter. Aberdeen Group plc now owns 1,448,931 shares of the information technology services provider’s stock valued at $221,962,000 after buying an additional 1,162,005 shares in the last quarter. Finally, Sarasin & Partners LLP boosted its stake in ServiceNow by 386.2% during the fourth quarter. Sarasin & Partners LLP now owns 1,233,408 shares of the information technology services provider’s stock valued at $188,946,000 after buying an additional 979,740 shares in the last quarter. Hedge funds and other institutional investors own 87.18% of the company’s stock.
About ServiceNow
ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.
The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.