ServiceNow, Inc. (NOW) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
ServiceNow is positioned as an AI orchestration leader, leveraging its digital workflow incumbency to benefit from AI adoption. Management targets $30–$32 billion in subscription revenues by 2030, with minimal deceleration and expanding GAAP margins driven by AI-enabled operating leverage. NOW trades at 6.6x sales, well below its 5-year average, offering robust growth and profitability at a compelling valuation with potential 'beat and raise' upside.
While the broader market experiences volatility, ServiceNow shares are suddenly skyrocketing.
ServiceNow, Palo Alto Networks, and other software providers are rebounding as the market shakes off AI disruption fears.
Software stocks rallied sharply on Tuesday, extending a rebound in a sector that had come under intense pressure this year amid concerns that artificial-intelligence agents could threaten traditional enterprise software providers. In US, shares of enterprise software companies moved broadly higher, with ServiceNow (NOW) leading gains after a strong rally in the previous session.
One software maker's stock is bucking the trend with big gains Monday after a group of Wall Street analysts said they believe concerns about AI disruption to its business are overblown.
Application-software stocks are getting more love from Wall Street.
Bank of America (NYSE:BAC | BAC Price Prediction) reinstated its coverage of ServiceNow (NYSE:NOW) with a Buy rating and a $130 price target on May 18.
ServiceNow (NYSE:NOW) stock is surging today, last seen up 7% to trade at $101.75, after BofA Global Research initiated coverage with a “buy” rating and a $130 price target, a roughly 37% upside from Friday's close.
ServiceNow stock price has tumbled in the past few months, erasing billions of dollars in value as the market capitalization has dropped from $233 billion to $98 billion. NOW has tumbled amid the rising concerns that artificial intelligence tools will disrupt its business model.
NOW expands enterprise clientele as AI-driven demand and platform adoption fuel growth, with subscription revenues up 22% and strong cRPO visibility.
ServiceNow is deeply embedded in large enterprises, making its platform highly irreplaceable and resilient to AI-driven disruption. NOW's land-and-expand strategy, high renewal rates, and expanding AI capabilities reinforce its competitive moat and drive robust subscription growth. Despite AI-related bearish narratives, NOW's fundamentals remain strong, with 25% YoY RPO growth and a 98% renewal rate, signaling continued customer dependence.