ServiceNow stock price has been in a strong freefall in the past few months, moving to its lowest level since November 2023. It has dropped in the last five consecutive weeks, its longest losing streak in years.
NOW has plunged by nearly 50% from its highest level in 2024, with its market dropping from $250 billion to the current $117 billion.
Why ServiceNow stock price imploded
ServiceNow share price has been in a strong freefall in the past few months as investors have remained concerned about its disruption by companies in the artificial intelligence industry.
The crash accelerated this month when Anthropic, the creator of Claude, released its latest model, which is designed to solve complex challenges like coding, enterprise workflows, and handling complex reasoning tasks.
Analysts now believe that some of the services that ServiceNow offers will be disrupted as AI models become more advanced. This also explains why other software stocks like Intuit, Adobe, and Salesforce have plunged in the past few months.
ServiceNow stock has also plunged as the company embraces growth through acquisitions. The company recently acquired Armis, a top player in the cybersecurity industry in a deal valued at over $7.75 billion.
Before that, it spent $2.85 billion to acquire Moveworks. Its other acquisitions were companies like Data.world and Logik.
These acquisitions were notable because ServiceNow was known for its organic growth over the years. As such, focusing on acquisitions could be a sign that the management expects its core growth to slow.
Additionally, the NOW stock price has crashed as investors revalue it. As we wrote several times here and here, the company was highly valued, with its trailing price-to-earnings ratio soaring to 141 in 2025. Today, this figure has dropped to 76.
Finally, investors believe that the AI tools that ServiceNow has launched, including its AI platform, will take time to start making substantial sums of money.
ServiceNow growth momentum to slow
Meanwhile, Wall Street analysts believe that ServiceNow’s growth will continue slowing in the coming years.
The average estimate among analysts is that the upcoming earnings report will show that its revenue grew by 19% in the fourth quarter to $3.53 billion. This growth will bring its annual revenue to $13.24 billion, up by 20.5 billion.
Analysts expect that the annual revenue will then rise by 18.5% to $15.7 billion. This downward trend will likely continue as competition in its industry rises.
Wall Street analysts are scaling back their outlook for the company. Data compiled by MarketBeat shows that analysts from companies like Oppenheimer, Goldman Sachs, Stifel, and Cowen have all downgraded the stock.
As a result, the average analyst’s estimate for the stock is $215, down from $225 three months ago.
NOW stock price technical analysis
The weekly timeframe chart shows that the ServiceNow stock price has been in a strong downward trend in the past few months. It has plummeted from a high of $240 to the current $125. Most recently, the stock moved below the key support level at $136, its lowest level in April last year.
NOW has also moved below the 61.8% Fibonacci Retracement level at $133, confirming the bearish outlook. The 50-week and 100-week Exponential Moving Averages (EMA) are about to form a bearish crossover, while the Relative Strength Index (RSI) has continued falling.
Therefore, the most likely scenario is where the stock continues falling, with the next key target being at $100.
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