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.
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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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