Gublo
Small/Mid-Cap Trader, Multibagger/Penny Stocks, Earnings Analysis & Signals
ServiceNow looks like a buy below $100, trading at its lowest multiple in over a decade despite 20%+ growth, gross margins above 75% and a 40% free cash flow margin. Heavy insider buying and a sticky customer base add to the case that the market is being inefficient. x.comÂ
ServiceNow's unexpected expense surge makes its rich valuation more vulnerable in a struggling software sector. Revenue rose 21%, but spending drove an EPS miss and one quarter of guided cRPO deceleration; wider market conditions could hurt near term. The 20% selloff looks excessive, and few software companies should benefit as much from AI. Management could deliver over 3-5 years, though the stock is only close to a buy again now; below $100 looks good for the long term. x.com x.com x.com x.comÂ
ServiceNow's growth and deteriorating margins do not justify its valuation. It grew 3% quarter over quarter against a 107x trailing GAAP P/E, and its margins continue to deteriorate. It remains a great company, but is mostly saturated relative to that valuation. x.com x.com x.comÂ
ServiceNow is worth more than its current price even under conservative growth assumptions. It is projected to grow about 16-24% a year for the next five years, yet even assuming just 14% and applying a 25% margin of safety, its intrinsic value still exceeds today's share price. x.comÂ
Cost fears and CRPO misunderstandings caused ServiceNow's selloff. The stock is definitely undervalued; the market's reaction is ridiculous. x.comÂ
ServiceNow's guidance growth is set to fall by another fifth next quarter, a poor trajectory rather than a buying opportunity after earnings. x.comÂ
ServiceNow looks set up for a move now, framed simply as: if not now, then when? x.comÂ
ServiceNow looks very reasonably valued at around 20x forward earnings while growing about 20%, near one of its lowest multiples in years even as execution stays exceptionally strong. Revenue grew about 24%, earnings beat and guidance rose modestly, extending a run of consistent compounding few enterprise software businesses can match. A lower multiple often reflects falling expectations while the economics keep improving, not a problem with the business. x.comÂ
ServiceNow still looks too expensive even after falling 60-70% from its highs, given slowing growth, compressing margins, too much dilution and significant future AI risks. @realroseceline notes guidance drove the drop: the Armis acquisition brings temporary margin pressure, current remaining performance obligations are decelerating from 22% to 18%, and stock-based compensation has reaccelerated. x.comÂ
ServiceNow's third-quarter subscription revenue, cRPO and operating-margin beats make its double-digit selloff look overdone. After a 77% rise from April lows, it needed a big beat and raise; lower fourth-quarter cRPO guidance and back-loaded implications for $30-$32 billion in subscription growth by 2030 leave the stock in show-me mode. x.comÂ