ServiceNow, a prominent enterprise software and cloud computing company, is challenging the dominance of tech giant Google parent Alphabet as it makes significant strides in the cloud wars and AI advancements. While Alphabet’s stock has surged by 56% this year, ServiceNow is not far behind with an impressive 51% gain, making it a formidable competitor in the industry.
One key factor contributing to ServiceNow’s success is its ability to innovate and adapt to changing market needs. The company is currently in a cup base, with a buy point of 614.36, and the relative strength line has reached a 52-week high, indicating strong performance. Despite a temporary dip in earnings on July 27, ServiceNow is recovering as it builds the right side of the cup.
ServiceNow’s impressive track record dates back to its IPO in June 2012, where shares quickly soared from an initial price of $18 to an all-time high of 707.60 in November 2021, resulting in a remarkable gain of 3,831% over 11 years. The company’s Composite and EPS Ratings stand at a perfect 99, further solidifying its position as a growth stock.
The steady growth in sales and earnings over the past seven quarters is another indicator of ServiceNow’s success. Second-quarter sales increased by 23% to $2.2 billion, while earnings per share saw a 46% rise to $2.37. Subscription revenue also witnessed significant growth of 25%.
Looking ahead, ServiceNow has set ambitious goals for the future. CEO Bill McDermott aims to achieve $16 billion in revenue by 2026, a substantial increase from $7.26 billion in 2022. Additionally, the company is venturing into artificial intelligence. It introduced the ServiceNow Generative AI Controller and Now Assist For Search, enabling companies to leverage AI features for answering questions, generating content, and providing natural-language responses within a secure environment.
ServiceNow’s industry leadership is further bolstered by the support of prominent mutual funds and exchange-traded funds (ETFs). Mutual funds own 51% of ServiceNow’s outstanding shares, with Franklin Growth Fund (FKGRX) and Harbor Disruptive Innovation Fund (HAMGX) being notable shareholders. ETFs such as the iShares Expanded Tech-Software Sector ETF (IGV) and the Franklin Exponential Data ETF (XDAT) also hold ServiceNow stock.
As the top-ranked company in the enterprise software group, ServiceNow has solidified its position in the industry, surpassing rivals like Alphabet, Snowflake, and Workday. The company’s growth trajectory, coupled with its AI initiatives and cloud computing services, position it as a force to be reckoned with in the tech sector.
1. What is ServiceNow’s stock performance compared to Alphabet’s?
ServiceNow has experienced a gain of 51% this year, closely matching Alphabet’s 56% gain.
2. What are ServiceNow’s growth projections?
ServiceNow aims to reach $16 billion in revenue by 2026, up from $7.26 billion in 2022.
3. What are ServiceNow’s AI initiatives?
ServiceNow has introduced the ServiceNow Generative AI Controller and Now Assist For Search, allowing companies to leverage AI for various tasks such as answering questions, generating content, and providing natural-language responses.
4. Who are ServiceNow’s major shareholders?
Prominent mutual funds like Franklin Growth Fund (FKGRX) and Harbor Disruptive Innovation Fund (HAMGX) hold shares of ServiceNow stock. Additionally, exchange-traded funds (ETFs) like iShares Expanded Tech-Software Sector ETF (IGV) and Franklin Exponential Data ETF (XDAT) also hold ServiceNow stock.