ServiceNow Stock Reverses Early Weakness After Key Signal, Rises 2.4%

ServiceNow (NOW) stock reversed its early weakness today, rising by 2.4% after a key signal from the company's Q4 2024 earnings report. The stock initially fell more than 10% after the company reported a rare earnings miss, but investors seemed to regain confidence in the company's long-term prospects.

ServiceNow reported subscription revenues of $2,866 million in Q4 2024, representing 21% year-over-year growth and 21% in constant currency. The company also announced a $3 billion share repurchase program, authorized by its Board of Directors, to manage the impact of dilution. Additionally, ServiceNow unveiled its AI agent control tower, a powerful new feature that positions the ServiceNow Platform as the AI agent control tower for enterprise transformation.



Investors seemed to appreciate these strategic moves and the company's strong financial performance. ServiceNow's revenue growth outpaced some of its competitors in the enterprise software sector, such as Workday (WDAY) and Salesforce (CRM), which reported revenue growth of 18% and 17% year-over-year, respectively.



ServiceNow's commitment to innovation, strategic partnerships, and strong financial performance have driven its stock price growth over the years. The company's ability to adapt to changing market conditions and deliver consistent growth has made it a favorite among investors. As ServiceNow continues to execute on its strategic initiatives and deliver strong financial results, investors can expect the company's stock to remain a compelling investment opportunity.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long NOW.