For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in ServiceNow (NOW) ten years ago? It may not have been easy to hold on to NOW for all that time, but if you did, how much would your investment be worth today?
ServiceNow's Business In-Depth
With that in mind, let's take a look at ServiceNow's main business drivers.
Santa Clara, CA-based ServiceNow Inc. provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. The company’s Now Platform enables enterprises to enhance productivity by streamlining system processes.
By utilizing ServiceNow’s product portfolio, customers can design any workflow application to reduce the manual time taken by complex processes, and consequently optimize total cost of ownership or TCO.
The company’s solutions address the needs of many departments within an enterprise, including IT, human resources (HR), facilities, field service, marketing, customer service, security, legal and finance.
Now platform is the foundation of the company’s cloud-based services.
The company has three product suites for IT management and operations. These are IT Service Management (ITSM), IT Operations Management (ITOM) and IT Business Management (ITBM) solutions.
Non-IT products include Customer Service, HR and Security Operations.
ServiceNow’s end-markets are quite varied, which includes financial services, consumer products, IT services, health care, government, education, and technology.
In 2023, total revenues came in at $8.971 billion. ServiceNow derives revenues from two sources – subscriptions (96.8% of 2023 revenues) and professional services and other (3.2% of 2023 revenues).
North America, Europe, the Middle East and Africa (EMEA), and Asia Pacific & Other contributed approximately 63.6%, 25.6% and 10.8% of revenues, respectively in 2023.
The company operates data centers in Australia, Brazil, Canada, Hong Kong, Netherlands, Singapore, Switzerland, UK and the U.S.
ServiceNow has approximately 8,100 enterprise customers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For ServiceNow, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in August 2014 would be worth $14,320.93, or a gain of 1,332.09%, as of August 7, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 172.88% and the price of gold increased 74.91% over the same time frame in comparison.
Analysts are anticipating more upside for NOW.
ServiceNow shares have outperformed the industry year to date. NOW has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 1,988 total customers with more than $1 million in annual contract value (ACV) at the end of second quarter, which represents 15% year-over-year growth in customers. ServiceNow had 14 deals greater than $5 million in net new ACV and four deals of more than $10 million. It closed 88 deals greater than $1 million net new ACV. Generative AI deals continued to gain traction with net new ACV for Now Assist and was part of 11 deals worth more than $1 million in the reported quarter. It is riding on an expanding partner base. Nevertheless, ServiceNow is suffering from persistent inflation, stiff competition, and a challenging macroeconomic environment.
The stock is up 6.58% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2024. The consensus estimate has moved up as well.5 Stocks Set to Double
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
