Yahoo Finance If You Invested $1000 in ServiceNow 10 Years Ago, This Is How Much You'd Have Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in ServiceNow (NOW) 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 requires research, patience, and a little bit of risk. So, if you had invested in ServiceNow ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in April 2013 would be worth $13,582.03, or a gain of 1,258.20%, as of April 5, 2023, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 162.86% and gold's return of 23.02% over the same time frame.
Going forward, analysts are expecting more upside for NOW.
ServiceNow shares have underperformed the industry in the past year. ServiceNow is benefiting from robust growth in subscription revenues as reflected by the strong fourth-quarter 2022 results. The company 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. Further, its expanding global presence, solid partner base and strategic buyouts are expected to bolster growth prospects. Strategic alliances with the likes of Microsoft remain tailwinds. Nevertheless, ServiceNow is suffering from high inflation, unfavorable forex and challenging macro-economic environment. Stiff Competition is a headwind and is expected to hurt prospects in the long haul.
Over the past four weeks, shares have rallied 7.02%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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ServiceNow, Inc. (NOW) : Free Stock Analysis Report
