I’m Hitting Buy On $20,000 of ServiceNow Stock Despite The Melt Down | NOW Stock

3 weeks ago 18

Austin Smith

Tue, August 4, 2026 astatine 6:19 AM CDT 5 min read

Quick Read

NOW banal has fallen 41% successful a twelvemonth yet trades astatine a guardant P/E of 27, its cheapest valuation ever arsenic a nationalist company.
Unlike MSFT, NOW trades beneath its humanities valuation, and dissimilar CRM, its cybersecurity concern tops $1 billion, outgrowing each pure-play peer.
ServiceNow's EBITDA borderline has astir doubled to 23% portion absorption targets a 35% full-year escaped currency travel margin.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and ServiceNow didn't marque the cut. Grab the names FREE today.

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A close-up changeable of a integer trading surface showing a large, agleam greenish rectangular fastener with the connection 'BUY' successful achromatic superior letters. To its right, a akin large, agleam reddish rectangular fastener displays the connection 'SELL' successful achromatic superior letters. The inheritance is blurred, showing greenish and reddish numbers that look to beryllium banal data.

He precocious announced a $20,000 bargain of ServiceNow (NYSE: NOW) stock, and aft doing my ain owed diligence done AlphaSpace, Yahoo Finance's probe platform, I'm making the aforesaid decision. The banal has been chopped successful fractional portion the underlying concern has go much profitable than ever. At today's price, it's excessively hard to ignore. The banal has been chopped successful fractional portion the underlying concern has go much profitable than ever. At today's price, it's excessively hard to ignore.

SaaS Takes A Beating

Yahoo Finance's AlphaSpace instrumentality amusement ServiceNow's Shares Down implicit 44% In the past twelvemonth

NOW is down implicit 40% implicit the past twelvemonth and 27% twelvemonth to date. Reddit commenters person labeled the summertime sell-off the 'SaaS meltdown', others person called it 'The SaaSpocalypse". The fearfulness is rooted successful the thought that aft a decennary of printing wealth astatine oculus watering margins, AI volition devour endeavor SaaS gross growth. There is immoderate information to this. Coding tools from OpenAI and Anthropic marque it easier than ever for companies to physique their ain customized solutions to antecedently analyzable problems. Companies similar Salesforce (NYSE: CRM), ServiceNow, and Atlassian (Nasdaq: TEAM) person been enactment successful the enactment of fire.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and ServiceNow didn't marque the cut. Grab the names FREE today.

But successful ServiceNow's Case, the rumors of their demise person been greatly exaggerated.

The Market's Blind Spot

The marketplace is partially close and are pricing successful a fading maturation story, but they're besides underpricing the processing nett and valuation story. As you tin spot successful AlphaSpace's dashboard, gross maturation whitethorn beryllium slowing but it's inactive blisteringly fast. Meanwhile, EBITDA and Free Cash Flow are hitting the accelerator, outpacing gross maturation since 2025.

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