1Semana·

ServiceNow just got punished by Wall Street 📉

$NOW (-0,2%) reported its Q3 results:

📈 Revenue: $4.1B (+20.5%)

💰 Subscription revenue: +21%

🤖 AI contract value target: $1.7B

📉 Stock reaction: around -15% after hours

So what's the problem?

For me, this is a perfect example of how strong business growth doesn't always translate into strong stock performance.

ServiceNow is still growing fast, but investors are expecting near-perfect execution, especially when it comes to AI monetization and profitability.

The business looks solid. The expectations might simply be too high.

12 Comentários

Keineui@Keineui

1Semana

I don't think the numbers are that bad, so I don't quite understand the reaction. But I'm staying invested—I'm still well in the black, after all. They'll bounce back. They're one of the companies benefiting from AI in the software sector and one of the companies that has figured out how to transform its business.

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Mike@MikeUpegui

1Semana

@Keineui I agree. One question: are you planning to buy more?

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Keineui@Keineui

1Semana

@MikeUpegui No, not for now

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Tim Oosterhout@Tim00sterhout

1Semana

@Keineui I see it the same way. Unfortunately my position is already quite big. So I will hold for now. Had the chance to sell a part before the figures, but I was excited about it. Now there is just 5% profit again...oops

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Pelo@pelo

1Semana

@Keineui same as u, 1 week ago it was my best position. No worries for me

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Tim Oosterhout@Tim00sterhout

1Semana

@pelo Are you buying more, unless the position is already quite big?

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Pelo@pelo

1Semana

@Tim00sterhout i’m still thinking cuz I need some cash for another thing (not link to the invest part)

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Olli@Olli68

1Semana

@Keineui The numbers were okay, except for the change in how certain business segments (subscriptions, etc.) were classified. However, according to the guidance, growth is slowing from over 20% to about 17–18%, which, given the ambitious valuation multiples, represents a clear valuation flaw in my view.

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