ServiceNow (NOW) Plunges 6.1% Amid Tariff Concerns
1min read On April 4, 2025, ServiceNow's stock experienced a significant drop of 6.1% in pre-market trading, reflecting investor concerns and market dynamics.
Analysts have expressed mixed sentiments regarding ServiceNow's future performance. Some, like Brad Reback, have adjusted their target price for the stock from $1175 to $950, citing increased uncertainty due to factors such as government efficiency measures and tariffs. Despite this, Reback maintains a "buy" rating, suggesting that the stock still has potential for growth.
Reback's report highlights the potential impact of near-term risks on consumer purchasing decisions, leading to a more conservative outlook for the remainder of the year. He has also revised his expectations for 2025 and 2026, considering the current backlog and subscription revenue.
Despite the near-term volatility, Reback remains optimistic about ServiceNow's long-term prospects, predicting around 20% growth in revenue and free cash flow, along with expanding profit margins over the next few years.
