ServiceNow Is a Top AI Stock, but Is It Really a Good Buy?
In May 2023, cloud and artificial intelligence (AI) software provider ServiceNow (NYSE: NOW) laid out its roadmap for scaling its subscription business from $8.5 billion a year to over $15 billion by 2026. Since then, AI has gone from early hype to a legitimate driver of business growth.
The problem is, ServiceNow stock has soared some 60% in the last 12 months, pricing in a large part of the business's expected growth over the next few years. Is this top AI software stock still a buy?
In the first quarter of 2024, ServiceNow reported total subscription revenue of $2.52 billion, a 25% year-over-year increase. Management kept its full-year 2024 revenue outlook mostly unchanged, slightly upping the low-end of guidance for $10.560 billion to $10.575 billion in expected subscription revenue. That implies full-year growth of about 22%, keeping ServiceNow on track for that 2026 target.
Source Fool.com
ServiceNow Inc. Stock
The stock is one of the favorites of our community with 60 Buy predictions and 1 Sell predictions.
With a target price of 792 € there is a slightly positive potential of 13.96% for ServiceNow Inc. compared to the current price of 695.0 €.
