Back to top

Image: Bigstock

Here's How Much You'd Have If You Invested $1000 in ServiceNow a Decade Ago

Read MoreHide Full Article

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in ServiceNow (NOW - Free Report) ten years ago? It may not have been easy to hold on to NOW for all that time, but if you did, how much would your investment be worth today?

ServiceNow's Business In-Depth

With that in mind, let's take a look at ServiceNow's main business drivers.

Santa Clara, CA-based ServiceNow Inc. provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. The company’s Now Platform enables enterprises to enhance productivity by streamlining system processes.

By utilizing ServiceNow’s product portfolio, customers can design any workflow application to reduce the manual time taken by complex processes, and consequently optimize total cost of ownership or TCO.

The company’s solutions address the needs of many departments within an enterprise, including IT, human resources (HR), facilities, field service, marketing, customer service, security, legal and finance.

Now platform is the foundation of the company’s cloud-based services.

The company has three product suites for IT management and operations. These are IT Service Management (ITSM), IT Operations Management (ITOM) and IT Business Management (ITBM) solutions.

Non-IT products include Customer Service, HR and Security Operations.

ServiceNow’s end-markets are quite varied, which includes financial services, consumer products, IT services, health care, government, education, and technology.

In 2022, total revenues came in at $7.245 billion. ServiceNow derives revenues from two sources – subscriptions (95.1% of 2022 revenues) and professional services and other (4.9% of 2022 revenues).

North America, Europe, the Middle East and Africa (EMEA), and Asia Pacific & Other contributed approximately 65.2%, 24.5% and 10.3% of revenues, respectively in 2022.

The company operates data centers in Australia, Brazil, Canada, Hong Kong, Netherlands, Singapore, Switzerland, UK and the U.S.

ServiceNow has approximately 7,700 enterprise customers.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in ServiceNow a decade ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in April 2013 would be worth $12,887.57, or a 1,188.76% gain, as of April 21, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 165.54% and gold's return of 37.37% over the same time frame.

Analysts are forecasting more upside for NOW too.

ServiceNow shares have outperformed the industry in the year-to-date period. It is riding on the increasing adoption of its workflows by enterprises undergoing digital transformation. As businesses, government agencies and others continue to their infrastructure to cloud, the company is poised to boost uptake of its Now platform. Its expanding global presence, solid partner base and strategic buyouts are expected to bolster prospects. The availability of new solutions — Automated service suggestions, Service Request Playbook and Workplace Scenario Planning — is helping the ServiceNow win new customers. This is driving subscription revenues. Strategic alliances with the likes of Microsoft remain tailwinds. Nevertheless, ServiceNow is suffering from high inflation, unfavorable forex, stiff competition and challenging macro-economic environment.

The stock has jumped 6.18% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2023; the consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


ServiceNow, Inc. (NOW) - free report >>

Published in