Service Today (NOW) shares fell on Tuesday after Chief Executive Bill McDermott said the company’s sales cycle in Europe could be lengthening. The comments, made to CNBC on Monday, sent NOW stock down more than 11%.
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In a report, BMO Capital Markets analyst Keith Bachman said McDermott spoke on CNBC with business analyst Jim Cramer.
“Most of the interview was about the benefits of workflow productivity, consistent with recent management comments,” Bachman said. “Bill also mentioned the FX (currency) headwinds, which we view as an obvious and obvious challenge for our covered universe. However, Bill also mentioned some extensions of sales cycles in Europe.”
NOW the stock fell 11.6% to 433 in morning trading on the stock market today.
NOW Stock: Earnings Payable July 27th
ServiceNow based in Santa Clara, Calif. will report second-quarter earnings on July 27th.
The company’s software monitors and manages the services provided by information technology departments. Also, its self-service tech portal allows company employees to access administrative and workflow tools.
In addition, ServiceNow has expanded from its core business to software for human resources, customer service management and security.
Amid a major correction in software growth stocks, ServiceNow stock owns a Relative Strength Rating of 62 at the best possible 99. NOW the stock is down 31% in 2022, according to IBD Stock Checkup.
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