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ServiceNow (NYSE: NOW) released the following statement on StreetInsider.com following today’s weakness in the stock, attributed to comments made by CEO Bill McDermott on Mad Money Monday night.
“No company is in a better position to help customers adapt through the current macro environment than ServiceNow. Overall, demand for digital technology remains stable. Our customers recognize the economic challenges. but continues to indicate substantial growth in IT spending.Endustrial software industry analysts correctly believe will remain a deflationary force as the industry benefits from secular tailwinds caused by digital transformation, cloud migration, and enhanced capabilities of AI.
We also hear from our customers that macro complexity is true, specifically with inflation and foreign exchange currency. That’s why CEOs have no tolerance for multi-year projects with unlikely ROI. They redirect resources to technologies like ServiceNow that deliver results faster.
As a result, ServiceNow remains stable and agile. Our customers are not immune to the effects of a turbulent market, so we hope to help them change through uncertainty. “
Shares of ServiceNow fell as much as 13% on Tuesday on investor concerns as the CEO discussed FX headwinds and some extensions of sales cycles in Europe.