How to Buy Servicenow Stock
Servicenow Inc
Servicenow is a app company located in California, United States, which is part of the Technology sector, and is traded under the ticker NOW on the NYSE exchange.
Servicenow stock last closed at $746.29, up 0.72% from the previous day, and has increased 57.78% in one year. It has overperformed other stocks in the Software - Application industry by 0.34 percentage points. Servicenow stock is currently +74.5% from its 52-week low of $427.68, and -8.47% from its 52-week high of $815.32.
As of Apr 24, 2024, there are 205M shares of NOW outstanding. The market cap of NOW is $152.99B. In the last 24 hours, 1.56M NOW shares were traded.
How to Buy Servicenow Stock
Not sure how to invest in Servicenow stock? Here's how.
- Decide where to buy Servicenow stock: You need to pick an online brokerage, but don't worry - we've tested dozens of online brokerages and apps to help you figure out where to buy Servicenow stock.
- Open your brokerage account: Sign up for 0% commission trading with the highest-rated brokerage we've selected.
- Deposit money your investment account: Pick your payment method and add your information.
- Analyze Servicenow stock: The Servicenow ticker symbol is NOW. Is Servicenow stock a good investment? Should you buy shares of NOW? How do NOW's underlying business fundamentals look? Do top analysts think Servicenow is a good buy? Why has NOW's stock price moved recently? (Hint: Our stock market analysis website can help you decide if NOW is a good stock to buy).
- Make your NOW trade: Decide if you will purchase NOW shares at the current market price or use a limit order to purchase NOW stock at a specific price.
- Get key alerts regarding your NOW position: Create a watchlist to monitor your new investment in Servicenow shares.
Step 1: Decide where to buy Servicenow stock
You will need an online brokerage account to access the NYSE market and buy NOW shares.
Our preferred brokerage: eToro
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Get $10 towards your purchase of shares by opening an account with eToro now.
Open eToro AccountStep 2: Open your brokerage account
Now that you've selected the best brokerage, you need to fill out some personal information so you are able to buy NOW today.
How to Set Up a New Investment Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Enter your personal details to open a new brokerage account.
- Send your details by clicking the "Create Account" button. Get started with eToro today
Step 3: Deposit money your investment account
Now that you've opened your account on a mobile trading app, you need to deposit funds:
Watch the tutorial below if you need help transferring funds into your brokerage account.
Step 4: Analyze Servicenow stock
Once you have figured out the best place to buy Servicenow stock, it's critical to research their stock before you invest, so you actually understand the risk as well as the opportunity.
Servicenow shares quick numbers
NOW Due Diligence Checks
WallStreetZen was designed to help everyday investors perform more in-depth fundamental analysis quickly.
You can view all of the due diligence checks on NOW's stock page.
Is NOW stock undervalued or overvalued?
Investors use many financial metrics, analyses, models, and charts to gauge NOW's true value.
Using relative valuations measures:
- NOW may be undervalued based on its P/E ratio of 88.01x, relative to Software - Application industry P/E ratio of 103.08x
- NOW may be overvalued based on its P/B ratio of 20.06x, relative to Software - Application industry P/B ratio of 6.53x
- NOW could be overvalued based on its PEG ratio of 4.64x
You can access additional valuation research on NOW's stock here.
A quick look at NOW Financials
Signs that NOW is financially healthy:
- Total NOW debt is lower than 5 years ago, relative to shareholder equity.
- There are more short-term assets than short-term liabilities on the NOW balance sheet.
- NOW earnings of $1.01B is not enough to cover its interest payments.
- There are more short-term assets than long-term liabilities on the NOW balance sheet.
- NOW's operating cash flow of $3.40B allows it to safely service it's debt of $2.28B.
- NOW profit margin has gone up from 4.5% to 19.3% in the past year.
Signs that NOW is not financially healthy:
- NOW has a relatively high debt to equity ratio of 1.28.
Is it a good time to buy Servicenow stock, according to Wall Street analysts?
Out of 19 sell side analysts who monitor NOW, the consensus analyst rating on NOW is a Strong Buy
Please keep in mind that analyst forecasts are not recommendations, nor are they investment advice.
Latest NOW Analyst Forecasts
Samad Samana, a bottom 8% analyst from Jefferies maintains NOW with a strong buy rating and raises their NOW price target from $885.00 to $900.00, on Apr 10, 2024.
Jason Ader, a bottom 3% analyst from KeyBanc initiates coverage on NOW with a strong buy rating and announces their NOW price target of $1,000.00, on Mar 21, 2024.
Brad Reback, a top 8% analyst from Stifel Nicolaus reiterates NOW with a strong buy rating and maintains their NOW price target from $820.00 to $820.00, on Mar 20, 2024.
Kash Rangan, a top 13% analyst from Goldman Sachs maintains NOW with a strong buy rating and raises their NOW price target from $800.00 to $910.00, on Jan 26, 2024.
Rob Oliver, a top 11% analyst from Baird maintains NOW with a buy rating and raises their NOW price target from $780.00 to $870.00, on Jan 25, 2024.
Baird's Rob Oliver raised their price target on Servicenow (NYSE: NOW) by 11.5% from $780 to $870 on 2024/01/25. The analyst maintained their Buy rating on the stock.
Responding to Servicenow's 2024/01/24-released Q4 and FY 2023 print, Oliver called it "another strong quarter" with management increasing FY 2024 guidance.
With GenAI products generating the most NNACV(Net New Annual Contract Value) of any new product release in the company's history, the analyst noted that all key financial KPIs for Q4 2023 came in ahead of expectations.
Earnings Report
Servicenow reported:
For Q4 2023:
- EPS of $3.11, which beat the Zacks Consensus Estimate by 12.27% and, by 36.4% Q4 2022’s $2.28.
- Revenue of $2.44B, which beat the Zacks Consensus Estimate by 1.67% and, by 25.7%, Q4 2022’s $1.94B.
- Subscription revenue of $2.37B, up 26% Y/Y.
- cRPO (Current Remaining Performance Obligations) of $8.60, up 24% Y/Y.
- Operating margin of 29%.
For FY 2023:
- EPS of $10.78, up 42% Y/Y.
- Revenue of $8.97B, up 24% Y/Y.
- Subscription revenue of $8.68B, up 26% Y/Y.
- Subscription gross margin of 85%.
- Operating margin of 28%.
- Free cash flow margin of 30%.
Management guided:
For Q1 2024:
- Subscription revenue of $2.51B to $2.52B.
- cRPO growth of 20%.
- Operating margin of 29%.
For FY 2024:
- Subscription revenues $10.56B to $10.58B.
- Subscription gross margin of 84.5%.
- Operating margin of 29%.
- Free cash flow margin of 31%.
Chairman & CEO Bill McDermott commented: “Servicenow closed out the year with another outstanding quarter.
“Generative AI is injecting new fuel into our already high‑performing engine.
“Servicenow’s intelligent platform for end‑to‑end digital transformation is driving massive leaps in productivity and explosive growth.
“This is a breakthrough moment.”
CFO Gina Mastantuono commented: “Once again we exceeded our topline growth and operating margin guidance metrics, showcasing Servicenow’s consistent and relentless focus on execution.
“We ended Q4 with a 99% renewal rate, accelerating large new logo growth, and the strongest NNACV(Net New Annual Contract Value) contribution for any new product family with the introduction of our Plus SKUs.”
“The accelerating pace of investment in workflow automation and generative AI positions us well for another strong year and we are raising our outlook for 2024.”
You can dig deeper into what analysts are saying on the Servicenow stock forecast page.
NOW Trading Indicators
NOW Earnings
Last year, NOW earnings were $1.73B. In the past four year, NOW's earnings have increased by 26.04% per year. This was slower than the Software - Application industry average of 30.84%.
Last year, NOW revenue was $8.97B. In the last 5 year, NOW's revenue has gone up by 28.02% per year. This was faster than the Software - Application industry average of 27.59%.
You can analyze NOW's earnings and revenue performance here.
Who is buying/selling NOW?
Over the past 12 months, insiders at NOW have sold more shares than they have bought.
Jacqueline P. Canney, Chief People Officer of NOW, was the latest NOW insider to sell. They sold $272,249.70 worth of NOW shares on Apr 15, 2024.
Get more info about who owns NOW stock here.
Does NOW provide a stable income stream?
No, Servicenow doesn't provide an income stream by paying out dividends.
What others are saying about NOW
One of the primary reasons eToro is our favorite brokerage is because of its social trading community.
Click below to find out what other traders have to say.
Step 5: Make your NOW trade
You have two primary options:
- Market order: A market order is an order to buy or sell a stock at the best available price.
Market orders are generally the easiest way to buy. - Limit order: A limit order enables you to buy or sell a stock at a specific price (or better).
If you want to be certain you're buying or selling at a particular dollar amount limit, use a limit order.
Click the Open button and your broker will place your order.
If you require more help with investing in stocks on eToro, watch the how to video below:
Step 6: Get key alerts regarding your NOW position
Now that you own some NOW stock, you'll want to keep up with your shares.
Add NOW to a watchlist to get notified of the latest news about your NOW stock.
NOW Feed
How to Buy Stock in Servicenow
To reiterate, here are the 6 steps to buy stock in Servicenow:
- Decide where to buy Servicenow stock
- Open your brokerage account
- Deposit money your investment account
- Analyze Servicenow stock
- Make your NOW trade
- Get key alerts regarding your NOW position
If you are looking for a brokerage account, eToro is our recommended venue.
Get Started with eToro TodayIf you would like to get the latest scoop on your investment in Servicenow, get started below.
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