ServiceNow stock trades 15.5% below 52-week high, facing challenges, but showing positive momentum.

From Nasdaq.: 2025-07-02 12:28:00

ServiceNow (NOW) shares closed at $1,011.89 on July 2, down 15.5% from the 52-week high. The stock has dropped 4.5% YTD, underperforming the Computer and Technology sector but outperforming the Computers – IT Services industry. NOW faces challenges due to tariffs and DOGE-related issues, impacting growth and revenue.

Despite recent challenges, ServiceNow’s shares have surged 24.5% since reporting Q1 2025 results. The company benefits from increased adoption of its workflows by enterprises undergoing digital transformation. Technically, the stock is displaying a bullish trend above key moving averages, signaling positive momentum.

ServiceNow’s expanding portfolio and accretive acquisitions have been key catalysts for growth. The company introduced AI-powered solutions to streamline core business operations and enhance security measures. Partnering with industry giants like Amazon, Microsoft, and NVIDIA, ServiceNow continues to innovate and drive enterprise adoption of its platform.

The Zacks Consensus Estimate for ServiceNow’s 2025 earnings shows an upward trend, with expectations of a 18.82% increase from 2024. However, NOW’s stock is considered overvalued, trading at a higher Price/Sales ratio compared to the sector. Investors should consider these factors before deciding on NOW stock.

ServiceNow’s expanding portfolio and strong partner base are expected to drive subscription revenues and clientele growth. However, challenges like unfavorable forex impacts and stretched valuation make NOW less attractive for value investors. With a Zacks Rank #3 (Hold), investors are advised to monitor developments before making investment decisions.



Read more at Nasdaq.: ServiceNow Trades 16% Below 52-Week High: Buy, Sell or Hold the Stock?