ServiceNow stock surged 9% post Q2 earnings, showing strong growth and investor interest

From Nasdaq: 2024-08-09 11:19:00

ServiceNow (NOW) shares surged 9% after second-quarter results, outperforming the Zacks Computer & Technology sector and S&P 500. NOW ended Q2 2024 with 1988 customers with over $1 million in ACV, showing 15% growth YoY.

NOW benefits from AI and strong partner base, attracting investors. GenAI capabilities and expanding partner network enhance NOW’s solutions. The company closed 88 deals with over $1 million net new ACV and had 14 deals greater than $5 million in Q2 2024.

ServiceNow’s strong liquidity position with $5.41 billion in cash balance allows for growth opportunities and acquisitions. The company expects third-quarter 2024 subscription revenues to be between $2.66-$2.67 billion, forecasting a 20-20.5% increase YoY on a GAAP basis.

The Zacks Consensus Estimate for ServiceNow’s 2024 earnings is at $13.81 per share, indicating a 28.11% YoY increase. However, with a Value Style Score of F and a forward Price/Sales ratio of 13.39X, NOW stock may be overvalued. NOW currently has a Zacks Rank #1 (Strong Buy).

ServiceNow’s robust GenAI portfolio, strong partner base, and growth opportunities make it an attractive option for investors. With a Zacks Rank #1 (Strong Buy), NOW shares are trading above the 50-day moving average, signaling a bullish trend. ServiceNow is poised for continued growth and success in the coming quarters.



Read more at Nasdaq: ServiceNow Up 9% Post Q2 Earnings: Should You Buy NOW Stock?