{"id":41157,"date":"2023-07-27T10:46:38","date_gmt":"2023-07-27T14:46:38","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/servicenow-stock-drops-after-it-beats-raises-and-adds-ai-services\/"},"modified":"2023-07-27T10:46:40","modified_gmt":"2023-07-27T14:46:40","slug":"servicenow-stock-drops-after-it-beats-raises-and-adds-ai-services","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=41157","title":{"rendered":"ServiceNow Stock Drops After It Beats, Raises And Adds AI Services"},"content":{"rendered":"
\n

ServiceNow \u2014 a Santa Clara, Calif. provider of digital workflow services \u2014 has enjoyed a nearly 50% increase in its stock price in 2023.<\/p>\n

After reporting growth and profitability above expectations and raising guidance for the year on July 26, its stock lost 5% of its value in after-market trading.<\/p>\n

To me that looks like an opportunity for investors. My interview with CEO Bill McDermott suggests ServiceNow\u2019s new line of generative AI products could accelerate growth \u2014 which could put in reach the $800 a share price target he shared with me in 2022.<\/p>\n

ServiceNow\u2019s Strong Results And Guidance<\/h2>\n

The general rule for public company CEOs is if you report better than expected revenue and earnings growth and raise your guidance, investors reward you by boosting your stock price.<\/p>\n

That rule did not work when ServiceNow reported second quarter results July 26. Despite beating expectations, raising guidance, and introducing new GAI products with considerable revenue potential, its shares fell after-hours by about 3.5%.<\/p>\n

<\/fbs-ad><\/p>\n

Here are the highlights of its report, according to Investor\u2019s Business Daily:<\/p>\n