From Nasdaq: 2024-08-01 12:05:54

Artificial intelligence (AI) is revolutionizing industries, especially in GenAI search, improving real-time data access and user experiences. Google’s parent company, Alphabet (GOOGL), leads the way with advanced search technology. ServiceNow, Inc. (NOW) is also making strides with AI search capabilities and a recent acquisition to drive growth and earnings potential.

ServiceNow, founded in 2004, offers intelligent workflow automation solutions for digital businesses, with a market cap of $166.9 billion. The company’s AI-driven platform streamlines IT services and operations across various industries, outperforming the S&P 500 Index with a 41.6% rally in the past 52 weeks, and a forward PEG ratio of 1.84.

ServiceNow exceeded Q2 earnings expectations, with total revenue reaching $2.6 billion and subscription revenue up 23% at $2.54 billion. The company secured 88 deals over $1 million in ACV and aims to reinvent workflows with AI at the core. Management projects a 20.25% sales growth for the current quarter and a 129.5% profit increase in fiscal 2024.

ServiceNow strengthened its AI search capabilities by acquiring Raytion, enhancing its GenAI technology for unified, real-time data access. This move positions ServiceNow ahead of rising competition in the AI search space and sets a new standard for enterprise search. Analysts are bullish on NOW stock, with a consensus “Strong Buy” rating and a mean price target of $853.57, implying a 2.6% upside potential.



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