Key Stats for ServiceNow Stock
- Past-Week Performance: -12%
- 52-Week Range: $113 to $211
- Valuation Model Target Price: $217
- Implied Upside: 85.5% over 2.9 years
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What Happened?
ServiceNow stock fell about 12% this week, ending near the lower end of its recent range. The selloff began early in the week and persisted as downside momentum remained strong.
The decline was triggered by a downgrade from Macquarie, which cut its price target to $140 and moved the stock to a Neutral rating.
The call sparked heavy institutional selling, with shares falling as much as 9.8% intraday and trading volume surging to 54.9 million shares, a 253% increase versus normal levels.
The volume spike accounted for most of the week’s decline and pointed to broad repositioning rather than short-term trading.
After the downgrade, sentiment remained weak as the revised target reset near-term valuation expectations. With limited positive catalysts during the week, buying interest faded and the stock struggled to stabilize.
Insider selling disclosures added to the cautious tone. Chief Financial Officer Gina Mastantuono sold 2,075 shares at $170, while Director Paul Edward Chamberlain sold 1,500 shares at $161.60.
Over the past 90 days, insiders sold 15,310 shares worth roughly $2.5 million, reinforcing pressure following the downgrade-driven selloff.
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Is ServiceNow Undervalued?
Under valuation model assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 19.3%
- Operating Margins: 33.4%
- Exit P/E Multiple: 30.1x
Based on these inputs, the model estimates a target price of $217, implying 85.5% total upside from recent levels over the next 2.9 years.
Over the next year, results are likely shaped by continued enterprise adoption of AI-driven workflows across IT operations, customer service, and employee experience.
Expansion in multi-product subscriptions and longer contract durations supports revenue visibility, while higher AI feature usage adds margin leverage as scale improves.
ServiceNow appears undervalued at current levels, with future performance driven more by platform execution and AI monetization than short-term sentiment shifts.
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