ServiceNow ( (NOW) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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ServiceNow’s stock is on the rise following its announcement of acquiring AI startup Moveworks for $2.85 billion. This move is set to boost ServiceNow’s AI capabilities, especially in developing AI assistants for employee support and enhancing AI-driven automation across various departments. Analysts from Canaccord Genuity and Goldman Sachs are optimistic about the acquisition’s alignment with ServiceNow’s strategy and its potential for 20% long-term growth. However, some concerns exist regarding the acquisition’s high cost, as noted by Mizuho’s analyst, who pointed out that the deal is over 20 times Moveworks’ current annual recurring revenue. Despite these concerns, the acquisition is viewed as a significant step in solidifying ServiceNow’s position in the AI sector and promoting enterprise AI adoption, particularly in CRM automation.
More about ServiceNow
YTD Price Performance: -25.66%
Average Trading Volume: 1,607,140
Technical Sentiment Consensus Rating: Buy
Current Market Cap: $161.5B
For further insights into NOW stock on TipRanks’ Stock Analysis page.
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