ServiceNow Sharing: You should take a closer look at this sharing!

In most cases, technology companies issued good earnings reports and continued to rise. Service Now Company (New York Stock Exchange code: NOW) exceeds the street estimate, but its trading price is lower, and it is the stock ready for listing on the same day.

enterprise

ServiceNow provides software solutions for building and automating various business processes through the SaaS delivery model. The company mainly focuses on providing IT functions to corporate customers. ServiceNow started with IT Service Management (ITSM) and has now expanded to many different areas of IT.

More than twice the low in March 2020

After closing at US$282.32 in 2019, the stock hit a record high (US$362.95) in February and then collapsed along with the market. It finally bottomed in March ($238.93). This low is the same as the November 2019 low ($238.29).

Should investors sell now? Or is it worth joining ServiceNow?

At the beginning of April, when the low was $246.67, the stock could still be bought below $250. After gaining profits for nine consecutive months, it took a breather in January, but set a record high of $598.37 in February and reversed the price. Its historical closing high reached $594.47 on February 11.

The battle for growth technology

Throughout February until March, technology stocks with high P/E ratios were hacked, and ServiceNow was fully involved. Based on Wednesday’s closing price, the stock is still trading at a forward P/E ratio of 108.

The rapid decline from its all-time high ended on March 8, when the price bottomed to $462.51. The high of the rebound from this low reached $565.25 on Tuesday. It should be noted that without that high, the stock hit four of the five-day highs in the narrow range ($555.89 to $559.79) from April 21 to 29.

Get a free PDF report on ServiceNow: download it for free here

Q4 report

After the close on Wednesday, the company reported quarterly earnings of US$1.52 per share, an increase of 13% from analysts’ consensus estimate of US$1.34. This is an increase of 44% compared to the earnings per share of US$1.05 in the same period last year.

However, Wall Street is not satisfied with the announcement that the company has submitted a registration for the hybrid safety shelf product, which did not disclose any scale. Obviously, traders are watching the dilution of the offer.

Price concessions during the exhibition

When the stock was discussed on the broadcast, it had already suffered a deep loss and was trading in the $520 area. Dennis Dick is skeptical of bargain hunting. He said: “After the rally in March, those who were out this week were trapped, and the chart is in the middle.”