ServiceNowNYSE: NOW

Investors frequently depend on the advice of Wall Street analysts to make choices about buying, selling, or holding stocks. News articles about these analysts from brokerage firms changing their ratings can significantly influence a stock's price.

The company is collaborating with businesses to enhance their operations using artificial intelligence.

ServiceNow's Q3 results were better than expected, thanks to strong financial performance linked to AI use, but there are short-term valuation worries that have resulted in a Hold rating. Subscription revenue rose by 22.5% compared to last year, the operating margin exceeded predictions, and free cash flow margin saw a notable increase, highlighting solid operational success. Although the long-term outlook is positive, high valuation multiples indicate possible fluctuations, suggesting a careful strategy and smaller investment allocation.

On Thursday, ServiceNow (NOW) shares reached a record high after the company reported results that exceeded expectations and raised its forecasts. This surge in demand for its artificial intelligence (AI) platform contributed to the positive outcome.

NOW's results for the third quarter of 2024 show a significant increase in the use of its generative AI solution. However, the high valuation of the stock makes it a risky investment.

Jason Snipe from the Investment Committee explains why he has invested in ServiceNow, especially after the company exceeded earnings expectations.

ServiceNow (NOW) reported strong earnings for the third quarter, surpassing expectations for both revenue and profit. The cloud-computing platform also increased its forecast for subscription revenue.

ServiceNow's stock is set to reach a record high on Thursday after a positive earnings report.

ServiceNow's stock has increased by 33% this year. After the company released its third quarter report, shares from the Santa Clara, California-based firm saw a boost.