Why ServiceNow Stock Fell 16% in April
Shares of ServiceNow (NYSE: NOW) were falling last month, primarily due to a post-earnings sell-off in the software-as-a-service (SaaS) stock.
ServiceNow actually beat estimates in its first-quarter report, but the results weren't enough to convince investors that its business model is sustainable. Software stocks have plunged this year on fears that AI programs like Anthropic's Claude Code will disrupt them, though, thus far, there's little indication in the numbers that that's happening.
Nonetheless, Anthropic's revenue is soaring, and there is anecdotal evidence that smaller companies are beginning to use AI tools to design custom software programs, rather than buy them from enterprise software companies.
Source Fool.com
ServiceNow Inc. Stock
€96.48
1.610%
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As a result the target price of 131 € shows a positive potential of 35.78% compared to the current price of 96.48 € for ServiceNow Inc..
