Why ServiceNow Stock Crushed it on Thursday
Key Points
This AI-powered offering will be available on ServiceNow's platform.
Hopefully, financial details of the arrangement will be forthcoming.
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Enough investors were eager to own ServiceNow (NYSE: NOW) stock on Thursday to push the stock to a 1% gain. Much of this was due to a new partnership announced between the company and a top global electronics conglomerate.
International cooperation
That morning, Hitachi Digital Services announced that it's teaming with ServiceNow on a new, cutting-edge product.
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Hitachi wrote in a press release that the two companies will offer Hitachi Intelligent Infrastructure Monitoring (HIIM). It described this artificial intelligence (AI)-based product as a "solution that provides real-time monitoring and remote inspection while enabling a coordinated response across complex operations environments."
HIIM pairs with the ServiceNow platform, making it available to existing (and presumably future) clients of the American tech company.
Hitachi did not provide any financial details of its collaboration with ServiceNow.
A new feather in the cap
And that's probably the main reason why ServiceNow's stock moved only cautiously higher on the news. I feel that's an appropriate reaction; any expansion of ServiceNow's reach, or broadening of its platform, is almost inarguably positive news. Without a sense of the size of this deal or ServiceNow's piece of it, however, it's hard to judge what impact it'll have on the financials.
Still, I'd view this as positive news, even if it's not necessarily foundational to the buy case for ServiceNow stock.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool recommends Hitachi. The Motley Fool has a disclosure policy.
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