TLDR: Key Points
- ServiceNow stock rebounds after second-quarter earnings report
- Stock found support at 50-day and 21-day moving averages
ServiceNow Stock Rebounds Amid Tougher Scrutiny Of AI Stocks
ServiceNow, an enterprise software maker, rebounded after its second-quarter earnings report. The stock found support at its 50-day moving average and its 21-day exponential moving average, which are key technical levels. ServiceNow’s relative strength line remained strong despite a market rotation out of the technology sector and artificial intelligence plays. The stock has gained 17% in 2024, outperforming other big-cap software companies.
ServiceNow’s software tracks and manages IT services, and it has expanded into human resources, customer service management, and security software. The company’s Q2 earnings, revenue, and CRPO came in above expectations. Additionally, ServiceNow has been acquiring AI startups, although most analysts believe that generative AI technologies won’t be monetized in a material way until late 2025.
ServiceNow stock holds a Relative Strength Rating of 87 and an IBD Composite Rating of 95. The stock has an Accumulation/Distribution Rating of D-minus, indicating more funds are selling than buying.