Chart of the Day: ServiceNow's Struggles Could Bring a Terrific Opportunity
It has been a tough week as a downgrade and a potentially expensive acquisition hit this stock hard.
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It is always hard to have a glass-half-full point of view when a stock you own at higher prices takes a new leg down.
We continue to exercise patience with ServiceNow (NOW) with the understanding that the software company has strong deals in place, solid earnings and guidance along with a huge cash pile to buy back stock when needed (this might be a good time for this!).
The action has been very disappointing this year being down more than 20% in 2025 when most stocks are higher. We hang onto this name as we do not believe the story is over, but we also need to listen to the market if it is telling us that might not be true. We do not fall in love with stocks, they are a means to create wealth, and if there is something structurally wrong with the company then we should act.
As it is, ServiceNow's chart is quite bearish, now with another sell signal on the MACD indicator and stochastics (momentum) pointing lower. Candles are purple, which reflects bearish on the GoNoGo composite of indicators. Money flow just went bearish, too.
We still like ServiceNow in TheStreet Pro Portfolio and rate it a one, buy at anytime.
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At the time of publication, TheStreet Pro Portfolio was long NOW.
