ServiceNow, Inc. (NYSE:NOW) stock jumped 9% Thursday as investors rotated into large-cap technology stocks and responded to upbeat enterprise-software signals from Salesforce, Inc. (NYSE:CRM).
• ServiceNow stock is among today’s top performers. Why is NOW stock surging?
Salesforce Results Lift Enterprise Software Sentiment
Salesforce surged after posting a second-quarter double beat, issuing upbeat guidance and announcing its new "Claude Force" partnership with Anthropic.
CEO Marc Benioff also highlighted Salesforce’s strongest net new annual order value growth in four years, sixfold growth in Agentforce usage and triple-digit Slack bookings growth. The upbeat commentary supported sentiment across workflow and enterprise-software stocks, including ServiceNow.
Broader market strength also helped. The Technology sector gained 2.6%, the Nasdaq rose 1.07% and the S&P 500 advanced 0.6%. ServiceNow outperformed both the sector and the broader market.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $140.39 (based on 50 analysts), with targets ranging from $72 to $248. Recent analyst moves include:
- BofA Securities: Buy (Raises target to $150 on Aug. 19)
- TD Cowen: Buy (Maintains target to $140 on Aug. 17)
- Wells Fargo: Overweight (Raises target to $175 on Aug. 12)
Top ETF Exposure
- iShares Expanded Tech-Software Sector ETF (BATS:IGV): 4.02% Weight
- Global X Cloud Computing ETF (NASDAQ:CLOU): 4.12% Weight
- GraniteShares 2x Long NOW Daily ETF (NASDAQ:NOWL): 66.65% Weight
Significance: Because ServiceNow carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
NOW Price Action
NOW Stock Price Activity: ServiceNow shares were up 9.14% at $137.30 at the time of publication on Thursday, according to Benzinga Pro data.
Photo via Shutterstock