With ServiceNow Stock Sliding, Have You Assessed The Risk?
ServiceNow (NOW) stock is down 11.5% in a day. The recent slide reflects renewed concerns around its $7B Armis acquisition and AI pressures from KeyBanc downgrade, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where ServiceNow stands today.
- Size: ServiceNow is a $159 Bil company with $13 Bil in revenue currently trading at $765.20.
- Fundamentals: Last 12 month revenue growth of 21.1% and operating margin of 13.9%.
- Liquidity: Has Debt to Equity ratio of 0.01 and Cash to Assets ratio of 0.25
- Valuation: ServiceNow stock is currently trading at P/E multiple of 110.4 and P/EBIT multiple of 86.6
- Has returned (median) 56.7% within a year following sharp dips since 2010. See NOW Dip Buy Analysis.
These metrics point to a Very Strong operational performance, alongside Very High valuation – making the stock Attractive but Volatile. For details, see Buy or Sell NOW Stock
That brings us to the key consideration for investors worried about this fall: how resilient is NOW stock if markets turn south? This is where our downturn resilience framework comes in. Suppose NOW stock falls another 20-30% to $536 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- NOW stock fell 51.3% from a high of $701.73 on 4 November 2021 to $341.76 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 December 2023
- Since then, the stock increased to a high of $1,170.39 on 28 January 2025 , and currently trades at $765.20
| NOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -51.3% | -25.4% |
| Time to Full Recovery | 423 days | 464 days |
2020 Covid Pandemic
- NOW stock fell 30.2% from a high of $357.72 on 19 February 2020 to $249.57 on 3 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 5 May 2020
| NOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -30.2% | -33.9% |
| Time to Full Recovery | 32 days | 148 days |
2018 Correction
- NOW stock fell 27.2% from a high of $302.31 on 11 July 2019 to $220.01 on 23 October 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 13 January 2020
| NOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -27.2% | -19.8% |
| Time to Full Recovery | 82 days | 120 days |
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