On a day when most tech stocks were getting hammered, ServiceNow (NOW) decided to go its own way. Shares of the software company rose more than 4% on Monday, standing out in a session where the Nasdaq fell 1.43%, the S&P 500 slipped 0.50%, and the Technology sector dropped 1.7%. It was a risk-off kind of day, but someone forgot to tell ServiceNow.
The stock has been climbing since its April low, and Monday's move suggests the recovery is building momentum. While seven of the 11 S&P sectors traded higher—Energy led the pack with a 2.48% gain—Technology was dead last. That makes ServiceNow's advance all the more notable.
Technical Picture Improves
If you look at the charts, the short-term story is looking better. ServiceNow is trading 10.5% above its 20-day simple moving average of $101.78 and 10% above its 50-day moving average of $102.30. Those are the kinds of numbers that say the trend has turned positive, at least for now.
The longer-term picture is more mixed. The stock is still 13.8% below its 200-day moving average of $130.45, and it remains under the shadow of the "death cross" that formed back in August 2025, when the 50-day moving average crossed below the 200-day. That's a bearish signal that hasn't been erased yet.
Momentum indicators are improving, though. The MACD is above its signal line, and the positive histogram suggests buying pressure is building. Traders are watching resistance near $126.50—if the stock can break above that, it could reinforce the recovery. On the downside, support sits around $98, where buyers have stepped in before.
Earnings, Analysts, and Valuation
ServiceNow is set to report second-quarter results on July 22, and Wall Street has some expectations. Analysts are looking for earnings of 76 cents per share, down from 82 cents a year ago. Revenue is expected to grow to $3.93 billion from $3.21 billion in the same quarter last year.
The stock isn't cheap—it trades at about 64.1 times earnings, which is a premium compared to many software peers. But analysts are still broadly bullish. The consensus rating is Buy, with an average price target of $137.07, based on 50 analysts. Recent moves include Goldman Sachs lowering its target to $145 but keeping a Buy rating on July 9, Truist Securities raising its target to $130 while reiterating Buy on the same day, and Guggenheim upgrading the stock to Buy with a $125 target on July 1.
MarketDash Edge View
According to market data, ServiceNow scores highly for Growth at 87.54 but ranks weakly for Momentum at 12.71 and Value at 12.64. Its Quality score is neutral at 37.75. So it's a growth story, but the market isn't giving it much credit for momentum or value right now.
ETF Exposure
ServiceNow is a major holding in several ETFs, including the Mango Growth ETF (GARY), the GraniteShares 2x Long NOW Daily ETF (NOWL), and the Global X Cloud Computing ETF (CLOU). Large fund flows into or out of these ETFs can influence demand for the stock.
NOW Stock Price Activity: ServiceNow shares were up 4.29% at $112.33 at the time of publication on Monday, according to market data.
