Why It’s Time to Load Up on ServiceNow Stock

ServiceNow (NOW) shares have significantly lagged the broader market over the past year. The stock has declined 27%, while the S&P 500 Index ($SPX) has gained approximately 15.3% over the same period.

Several factors have contributed to the weakness. Investors are increasingly concerned that more capable generative artificial intelligence (AI) models could displace software-as-a-service (SaaS) applications, putting pressure on software stocks such as ServiceNow. Geopolitical tensions and the ongoing conflict in the Middle East have also delayed some subscription agreements, creating near-term headwinds for the company.