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Stock impact report

ServiceNow's $12 Billion Acquisition Spree Raises Investor Concerns [Yahoo! Finance]

ServiceNow, Inc. (NOW) 
Last servicenow, inc. earnings: 4/29 04:10 pm Check Earnings Report
Company Research Source: Yahoo! Finance
This is similar to the deal-driven approach that CEO Bill McDermott utilized when he was at SAP. The binge includes the $7.75 billion acquisition of cybersecurity firm Armis, as well as agreements for Moveworks and Genesys, a company that makes contact center software. Warning! GuruFocus has detected 3 Warning Sign with NOW. Is NOW fairly valued? Test your thesis with our free DCF calculator. Investors fear the acquisitions will slow development, causing the company's price to decline 30% in 2025 18% before and 12% following the Armis merger. According to RBC Capital Markets analyst Matthew Hedberg, the changes may be aimed to boost revenue rather than ServiceNow's core product momentum. McGermott called organic growth "delicious," but Guggenheim analysts now believe his strategy is "deja vu," meaning he is utilizing inorganic growth to compensate for slowdown. ServiceNow expects revenues to rise 21% to over $13 billion in 2025, similar to last year. If there are no new deals, Show less Read more
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