NOW
Wall Street’s doing the reluctant nod
ServiceNow is having one of those classic “the stock fell, but the thesis didn’t” moments. Shares were up about 4.9% on Thursday after a wave of analyst notes reminded everyone that Wall Street can trim a target and still keep the love flowing.
The vibe: less froth, same story
Truist cut its price target on NOW, but kept a Buy rating. Mizuho did the same general dance, lowering its target while staying at Outperform. That’s basically analyst-speak for: “We still like the company, we just don’t want to pay champagne prices for it anymore.”
Why investors should care
ServiceNow is still getting credit for being a key enterprise AI and workflow platform — the kind of software business that can sneak into the middle of a company’s nervous system and never leave. But when the market resets software valuations, even the favorites get a haircut.
What to watch:
- whether AI adoption keeps turning into real contract wins
- if enterprise spending stays sturdy enough to support premium multiples
- whether more analysts start shaving targets, or if this turns into a one-day valuation tantrum
Big picture: ServiceNow still has the software crowd’s respect. The only question is how much Wall Street wants to pay for the privilege.