Will owning ServiceNow Inc. (NYSE:NOW) amount to something?


Shares of ServiceNow, Inc. (NYSE:NOW) are currently poised at -0.77% from the open today and are trading at $96.47. More than 1,210,000 shares have exchanged hands compared to an average trading volume of 1.40M. At the current pps, the market cap stands at $16.28B. The stock prices of ServiceNow, Inc. (NYSE:NOW) are currently trading at -2.64% below its 52 week high and 51.90% above its 52 week low.

ServiceNow, Inc. (NYSE:NOW) has been in the news for all the right reasons. Recently, ServiceNow, Inc. (NYSE:NOW) announced ServiceNow Communities, a major new application in its Customer Service Management solution. More than ever, companies rely on loyal customers for business growth. Yet many aren’t delivering the service customers expect – personalized, relevant, and always-on. ServiceNow Communities provides a personalized, self-service experience for every customer. Their profile, cases, products, services and notifications are there for real-time access. Customers get the information most relevant to them by engaging with peers and experts and from contextual search. A customer-specific activity stream ensures they only get desired updates. Now, companies can reduce case volumes, obtain new perspectives into product use or customer needs, and expand overall reach to new prospects.

ServiceNow, Inc. (NYSE:NOW) is all set to announce its earnings on Apr 26/a. As per Zack’s analyst ratings, ServiceNow, Inc. (NYSE:NOW) currently has an average brokerage rating of 1.42. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NYSE:NOW) is $100.937 with a high of $115 and a low of $70.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 88% Buy with a Weakening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend. The market is approaching overbought territory. Be watchful of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). Currently, the 5 day EMA 96.66 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 90.00 is lower than current trading price depicting a bullish signal.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 69.75 suggesting a bullish price action.

As such, while we believe ServiceNow, Inc. (NYSE:NOW) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

ServiceNow, Inc. provides cloud-based services that automate enterprise IT operations. The Company’s service includes a suite of applications built on its platform that automates workflow and integrates related business processes. It focuses on transforming enterprise IT by automating and standardizing business processes and consolidating IT across the global enterprise. ServiceNow, Inc. is based in San Diego, California.

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