US Stocks Move | Q4 Earnings Exceed Expectations, ServiceNow Still Drops Over 11%, Hitting Lowest Level in Over Eight Years

Glonghui, January 29｜ServiceNow once fell more than 11%, hitting a low of $115.01, marking its lowest point in over eight years. In terms of news, ServiceNow's subscription revenue grew by 21% year-on-year to $3.47 billion in the fourth quarter of last year, and earnings per share excluding certain items were $0.92, both exceeding market expectations. As of December 31 last year, the number of customers with annual contract value exceeding $5 million increased from 553 in the previous quarter to 603. However, investors remain concerned that generative AI will reshape the industry landscape, thereby weakening ServiceNow's market position. An analyst at an exchange, Matthew Hedberg, pointed out that although the financial report and guidance largely met or even exceeded expectations, the decline in stock price was surprising, reflecting the current deep division in the market over valuation logic in the software industry.