Why ServiceNow Stock Is Gaining Today

ServiceNow (NYSE: NOW) stock is moving higher in Tuesday's trading. The software specialist's share price was up 1.9% as of 2:30 p.m. ET, and been up as much as 3.1% earlier in the day.

Two investment firms updated their valuation forecasts for ServiceNow today and lowered their respective price targets on the stock. But despite the downward forecast revisions, investors are buying shares because the new targets still suggest significant upside potential.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Two analyst firms stay bullish on ServiceNow despite target cuts

In new coverage issued before the market opened today, Oppenheimer lowered its price target on ServiceNow stock from $1,200 per share to $970 per share. The firm's analysts expect the business to post solid Q1 reports that have the potential to beat Wall Street's expectations, but they see macroeconomic and geopolitical risk factors leading to weaker demand in the enterprise software market.

Bank of America also cut its price forecast on ServiceNow today, lowering its target from $1,280 per share to $1,025 per share. On the other hand, the firm still maintained an outperform rating on the stock and expects that year-over-year growth for remaining performance obligations (RPO) for the first quarter will be in line with its previous target of 20.5%. But the analysts see a softer demand outlook further out and cut their RPO growth targets for the full year from 21% to 19.5% on a constant-currency basis.

What's next for ServiceNow?

As of this writing, Oppenheimer's new price target for ServiceNow suggests additional upside of roughly 19%. Meanwhile, hitting BofA's new target would mean a roughly 26% jump above the software specialist's current valuation level.

Macroeconomic and geopolitical risks could create business-specific headwinds for ServiceNow and create valuation pressures that impact the broader market, but the company's strength in enterprise artificial intelligence (AI) software suggests the stock could still be a big long-term winner.

Should you invest $1,000 in ServiceNow right now?

Before you buy stock in ServiceNow, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ServiceNow wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,231!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $678,552!*

Now, it’s worth noting Stock Advisor’s total average return is 800% — a market-crushing outperformance compared to 156% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 14, 2025

Bank of America is an advertising partner of Motley Fool Money. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and ServiceNow. The Motley Fool has a disclosure policy.