While Palantir actions continue to crush the market, another AI software, ServiceNow, has underreveled so far this year.
The ServiceNow shares have climbed considerably in the past year, and its $ 1,000 stock market price could remove investors, making it an interesting moment for management to consider a split of shares.
ServiceNOW also benefits from strong AI tail winds, and the premium assessment of the company seems justified.
Since the closure of Bell on June 6, the Software Darling Enterprise shares PALANTOUT Technologies won 69% over the year, making it the most efficient stock in the Nasdaq-100 hint.
While Palantir seems to be on an unstoppable race, smart investors understand that there are other opportunities at the intersection of artificial intelligence (AI) and software.
An AI software company which has become overshadowed by the rise Serve(NYSE: Now)A supplier of various cloud -based work management solutions and solutions for information technology professionals (IT).
With a stock market course of more than $ 1,000 to date, ServiceNow is a potential candidate for a stock sharing in the near future.
Let’s talk about the reason why this is and the question of whether the stock is a good purchase at the moment.
From time to time, a company can choose to divide its shares, increasing its number of shares while reducing its stock market in proportion. In a distribution of actions by 10 by 1, the company’s share price decreases by a factor of 10 while its actions in circulation increases ten. Consequently, market capitalization remains unchanged.
Image source: Getty Images.
In the past 12 months, the price of servicenow equity has increased by 46%, overshadowing gains by 12% and 14% of the S&P 500 And Nasdaq Composite Index, respectively.
Unfortunately, 2025 has been another story so far. From the closing bell of June 6, servicenow shares have been down 3% over the year. Admittedly, it is a bit special, because software companies as a (SaaS) service are relatively isolated from prices, which have been the largest drain on the stock market this year.
ServiceNow may have underperformed this year in part because of the suspicions of analysts that the company Public sector activities could be at risk of the Government Project for Reduction of the Budget known as the Ministry of Government Effectiveness (DOGE).
If investors have sold panic services on the concerns of the DOGE, it is ironic, because Palant – which draws more than half of its income from government contracts – has not witnessed a similar dynamic.
My thought is as follows: with a course in action north of $ 1,000, ServiceNow seems more expensive than other corporate software actions such as Palantir, DirtyAnd SAP.
Often, a company will decide to divide its actions in order to revive the interests of investors. The price of lower action can sometimes lead to a purchase resurgence.
Considering that ServiceNow has never made any splitting of shares and that the course of action has been disappointed with its peers this year, it could now be an interesting moment for management to consider a split.
Intelligent investors understand that the course of action alone does not dictate the value of a business. The graph below compares the price ratio / servicenow sales / sales (p / s) to those of some of its main peers. (I excluded Palant from this cohort because the P / S of the company of 102 makes a clear aberrant value.)
I think it is reasonable to say that ServiceNow is indeed an expensive stock, because its 18.8 P / s is the highest in this group and well in advance on most.
The question that investors should consider is whether ServiceNow deserves its premium. I think the answer is yes.
Depending on the benefits of the company’s first quarter, the services supplied by the AI of ServiceNow continue to stimulate demand for its software, as shown by a healthy increase in remaining performance obligations. In addition, I consider the current management directives as a global robust, given all the uncertainties that stimulate the economic environment at the moment and the competitive market for software solutions fueled by AI.
Whether or not the company performs a division of shares, I consider ServiceNow as a solid opportunity to purchase and maintain long -term.
Before buying actions in ServiceNow, consider this:
THE Motley Fool Stock Advisor The team of analysts has just identified what they believe 10 Best Actions So that investors are buying now … and ServiceNow was not part of it. The 10 actions that cut could produce monster yields in the coming years.
InquireNetflixMake this list on December 17, 2004 … if you have invested $ 1,000 at the time of our recommendation,You would have $ 660,341! * Or when NvidiaMake this list on April 15, 2005 … if you have invested $ 1,000 at the time of our recommendation,You would have $ 874,192! *
Now it’s worth notingStock advisorTotal average yield is999% – an outperformance that has made the market compared to173%For the S&P 500. Do not miss the last list of the best 10, available when you joinStock advisor.
Adam Spatacco has positions in palantant technologies. The Motley Fool has positions and recommends Adobe, Atlassian, Palantant Technologies, Salesforce, ServiceNow, Snowflake and Workday. The Word’s madman has a Disclosure policy.
