260.00 -0.69 (-0.26%)
Pre-Market: 8:37AM EDT
|Bid||259.00 x 1200|
|Ask||261.00 x 1400|
|Day's Range||258.18 - 269.27|
|52 Week Range||147.63 - 269.27|
|Beta (3Y Monthly)||0.97|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 23, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||247.74|
A strong earnings report from ServiceNow Inc. is helping to boost shares of the cloud computing company on Thursday, along with other software names. ServiceNow posted a sizable earnings beat and exceeded expectations on the top line as well. "ServiceNow continues to deliver strong top line growth with superior operating margins and FCF generation, making it the best house on the block," wrote Macquarie analyst Sarah Hindlian, who has an outperform rating and a $274 price target on the stock, up from $225 prior to the report. ServiceNow shares are up 7.7% in Thursday trading. Other software stocks are zooming higher, including Zuora Inc. , up 8.4%, and Zoom Video Communications Inc. , up 5.1%. ServiceNow's stock has climbed 47% so far this year, as the S&P 500 has risen 17%.
climbed 7.6% to $261.23 Thursday after the cloud computing company beat Wall Street's first-quarter earnings expectations and raised its revenue guidance. Wall Street was looking for $766.2 million. Revenue and billings performance was driven by strong bookings in the Americas, the company said, accelerated revenue recognition from self-hosted deals related to the company's federal business drove revenue outperformance.
[Editor's note: This story was previously published in February 2019. It has since been updated and republished.]Cloud stocks are back. During the late 2018 market selloff, cloud stocks were thrown out, along with every other growth stock in the market. But as financial markets have improved in early 2019 due to stabilizing economic fundamentals, cloud stocks have come roaring back.The big rebound in cloud stocks can be chalked up to improving fundamentals and sentiment. As it turns out, the global economy isn't spiraling downward at a rapid rate. Instead, it is simply slowing at a reasonable rate to a more steady 2-3% growth rate. Amid this slowdown, cloud services demand has remained robust, since cloud services are seen both as the future and a way to cut costs amid slowing growth.InvestorPlace - Stock Market News, Stock Advice & Trading TipsConsequently, the fundamentals and sentiment underlying cloud stocks have dramatically improved over the past month. As they have, cloud stocks have soared higher. * 7 Dividend Stocks That Could Double Over the Next Five Years This rally is far from over. Considering only 20% of enterprise workloads have shifted to the cloud, it's fair to say that the rally in cloud stocks is still in its early stages. With that in mind, let's take a look a seven cloud stocks to buy now. Adobe (ADBE)Perhaps the best-in-class cloud stock to buy now for healthy upside and limited risk is Adobe (NASDAQ:ADBE).The core growth narrative here is quite promising. Adobe is one part stable-growth business with a huge moat, and one part hyper-growth business with a rapidly expanding addressable market. Those two parts put together are worth far more than what the market is saying today.On the stable growth side, Adobe is a one-stop shop digital solution for creative professionals with relatively muted competition. This has always been the case. If you can't think of any true competitors to Adobe in the creative solutions space, you aren't alone. Just check out this list or this list of Adobe Photoshop alternatives. None of them are household names. Nor do any of them offer products even close in quality to Adobe's offerings. As such, this creative solutions business is a stable growth business with a huge moat and no competition, implying healthy revenue and profit growth for the foreseeable future.On the hyper growth side, Adobe is morphing into a cloud business with a unique value prop. Other cloud solutions focus on various factors. Adobe's cloud solutions focuses on experiences and visuals, and the company is leveraging its experience in visual-oriented solutions to create cloud solutions for companies looking to enhance their consumer's experience. As it does, Adobe's revenue and profits will move considerably higher.Overall, there's a lot to like about ADBE stock. This is a big growth company that will keep growing at a big rate for a lot longer. That level of robust growth will power ADBE stock significantly higher in a long term window. Twilio (TWLO)Another best-in-class cloud stock is cloud communications app maker Twilio (NYSE:TWLO)Over the past several quarters, Twilio has emerged as the unchallenged leader in the rapidly growing Communication Platforms-as-a-Service (CPaaS) market. The CPaaS market essentially consists of companies integrating real-time communication into their services. Think of Uber or Lyft using messages to communicate with riders when their rides are approaching.This market will be huge due to continuous shifts towards cloud-based communication, personalized customer experience and digital engagement. Quite simply, as consumers, we enjoy digital, real-time, and personalized communication about the services and products we are paying for. Twilio enables this communication. That positions this company for huge growth as the CPaaS market expands over the next several years. For what it's worth, research firm IDC expects this market to grow five fold over the next five years.Thanks to its huge customer and revenue growth and 95%-plus retention rate, Twilio has emerged as the clear leader in this space. As this space matures over the next several years, companies will increasingly turn towards Twilio to enable CPaaS solutions thanks to the company's leadership position (in new industries, you always tend to trust the leader). * 7 Dividend Stocks That Could Double Over the Next Five Years As such, over the next several years, Twilio will continue to grow at a rather robust rate. This big growth will ultimately power TWLO stock higher, especially against a favorable equity backdrop. ServiceNow (NOW)In the digitization and automation fields, the cloud stock to buy is ServiceNow (NYSE:NOW).ServiceNow is currently in the business of digitizing corporate operations. This includes automating corporate workflows and IT tasks. But, this is just the tip of the iceberg for ServiceNow. Automation is a big, big market. Automating IT tasks represents just a fraction of what the automation market will look like at scale.At scale, jobs across the entire corporate ecosystem will be replaced by more efficient digitized and automated solutions. ServiceNow will provide the lion's share of these solutions. As such, as the automation revolution plays out over the next several years, ServiceNow's revenues and profits will explode higher. As they do, NOW stock will explode higher, too, considering the valuation today remains reasonable.Overall, NOW stock is a great way to play the automation revolution. This revolution is still in the first inning, and the next eight innings promise to have broad and immense financial implications. For ServiceNow, those implications are hugely positive. As such, NOW stock should trend consistently higher over the next several years. Okta (OKTA)One of the more exciting cloud stocks to consider here is Okta (NASDAQ:OKTA).Okta is pioneering what the company calls the identity cloud. Essentially, this is a cloud solution centered on individual identity that allows millions of people across a corporate ecosystem to seamlessly, securely, and uniformly connect to the technological tools that the corporation is adopting. This may sound like a complex idea. The underlying technology is complex. But, the idea isn't. The idea is that companies everywhere are rapidly adopting new technologies, and that the implementation of these technologies is often difficult, chunky, and risky to identities and data. Okta solves this problem, and allows companies to adopt new technologies seamlessly and within the same secure cloud solution.This is a big idea. Big ideas have big markets. Indeed, the addressable market for Okta's identity cloud is the whole IT space. Okta recorded revenues of $115 million last quarter from growth of nearly 60%. This is nothing new. Over the past several quarters, the average revenue growth rate has hovered around 60%. * 7 Dividend Stocks That Could Double Over the Next Five Years Thus, this is a small company that is consistently and rapidly growing in a huge market. Gross margins are high, and marching higher, leaving room for big profits at scale. Overall, this is a big growth company with a ton of potential. The valuation is big, but the amount of growth firepower underneath this business implies a tremendous opportunity to grow into the valuation, and then some, making OKTA stock an attractive long term investment here. Salesforce (CRM)The king of all cloud stocks is Salesforce (NYSE:CRM), and there's good reason for that.Salesforce is at the heart of the cloud and data revolutions. The company leverages data and analytics to deliver robust cloud solutions to enterprises that want data-driven insights. Demand for this type of service will grow by leaps and bounds over the next several years as data-driven strategies and cloud solutions become the enterprise norm. Salesforce has developed a long-standing reputation for being the best in class for delivering these services.That won't change any time soon. As such, Salesforce's revenues and profits will soar higher over the next several years as the cloud and data revolutions gain mainstream traction.This will naturally push CRM stock higher. Valuation is somewhat of a concern at nearly 60x forward earnings. But, the company has enough growth firepower through cloud and data tailwinds to grow into its valuation. Plus, valuation has been a long-running concern for this stock, and the stock has done nothing but defy those concerns and head higher over the past several years.The same will be true over the next several years, too. Cloud and data tailwinds will propel CRM stock higher, and this stock will ultimately grow into its valuation. Indeed, numbers indicate the stock could double in the long run. Amazon (AMZN)Amazon (NASDAQ:AMZN) is better known for its giant e-commerce business. But, the true profit growth driver behind Amazon is the company's cloud business -- Amazon Web Services.AWS is the world's largest cloud infrastructure services business, and it's not even close. Amazon Web Services is bigger than its four closest competitors … combined. And the company has consistently controlled more than 30% of the cloud services market.This dominance speaks volumes about just how good AWS is. Indeed, AWS is so good that even Amazon's commerce competitors are giving money to the company through AWS. Notably, Amazon's e-commerce competitor Zulily migrated its infrastructure to AWS recently. Also, AWS is so good that Amazon it is the clear front-runner to win a $10 billion Joint Enterprise Defense Infrastructure (JEDI) commercial cloud contract with the U.S. government. If Amazon were to win that contract, that would be the second huge government contract it has won this decade (AWS won a $600 million CIA contract in 2013). * 7 Dividend Stocks That Could Double Over the Next Five Years Overall, AWS is the clear leader in the cloud infrastructure services. As this market grows over the next several years, AWS will grow, too, and that will provide a big boost to Amazon's profits. A big boost to Amazon's profits will give AMZN stock firepower to head higher. Alphabet (GOOGL)Much like Amazon, Alphabet (NASDAQ:GOOGL,NASDAQ:GOOG) is better known for its non-cloud businesses.But, a significantly underappreciated and underrated aspect of Alphabet is Google Cloud. Google Cloud is a big growth, big margin business for Alphabet. To be sure, the business has lost some steam over the past several quarters as Microsoft (NASDAQ:MSFT) has gained cloud market share at a more robust pace than Alphabet recently. But, there have been some C-suite changes at Google Cloud which could give the business new direction and new firepower to regain some lost momentum.Regardless, Google Cloud will remain a 20%-plus growth business for a lot longer. Overall, Google Cloud is the key to unlocking the next leg of value in GOOGL stock. Fortunately, this business is progressing as expected, and will continue to do so over the next several years. As it does, GOOG stock will move higher.As of this writing, Luke Lango was long ADBE, TWLO, CRM, AMZN and GOOG. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks That Could Double Over the Next Five Years * 6 S&P 500 Stocks Ready to Break Out * 5 Mining ETFs to Dig Into Compare Brokers The post 7 Cloud Stocks to Buy Now appeared first on InvestorPlace.
RGM Capital is a private investment advisory firm based in Naples, Florida with around $1.27 billion in assets under management (as of March 2018). It was founded by Robert G. Moses back in 2003, who is the company’s Portfolio Manager and Managing Partner as well. Moses started his career in 1991, after receiving a Bachelor’s […]
Investors need to pay close attention to ServiceNow (NOW) stock based on the movements in the options market lately.
Dow Jones futures: Facebook, ServiceNow, Microsoft and Lam Research are big earnings winners, but 3M and Xilinx tumbled. Tesla and Chipotle were up and down.
ServiceNow earnings and revenue for the first quarter beat consensus estimates, though profit growth slowed from previous quarters. ServiceNow stock climbed in after-hours trading.
SANTA CLARA, Calif. (AP) _ ServiceNow Inc. (NOW) on Wednesday reported a first-quarter loss of $1.5 million, after reporting a profit in the same period a year earlier. On a per-share basis, the Santa Clara, California-based company said it had a loss of 1 cent. Earnings, adjusted for one-time gains and costs, were 67 cents per share. The results topped Wall Street expectations.
SANTA CLARA, Calif.-- -- Subscription revenues of $740 million in Q1 2019, representing 36% year-over-year growth 25 transactions over $1 million in net new annual contract value in Q1 2019 717 total customers with over $1 million in annual contract value, representing 33% year-over-year growth ServiceNow today announced financial results for its first quarter ended March 31, 2019, with subscription ...
Below, a few experts with great records in technology weigh in on the false fears, and offer some of their favorite names at the moment. Earnings growth at S&P 500 (SPX) companies will be sluggish at best for the first two quarters of this year. “The U.S. economy appears to have stabilized after a shaky start to the year,” says Mark Zandi, chief economist of Moody’s Analytics.
Will ServiceNow Beat Analyst Estimates in Q1 2019?(Continued from Prior Part)Stock returns ServiceNow (NOW) stock has generated impressive returns over the last few years. The stock fell 3% in 2016 and then rose 69% in 2017. Last year, it rose 32%
Will ServiceNow Beat Analyst Estimates in Q1 2019?(Continued from Prior Part)Increasing capital expenditureServiceNow’s (NOW) sales have risen at an impressive rate over the last several years. The company has managed to increase sales by 500%
Will ServiceNow Beat Analyst Estimates in Q1 2019?(Continued from Prior Part)PE ratio ServiceNow is a high growth company. In this article, we’ll compare ServiceNow’s (NOW) valuation with other high growth tech firms such as Okta (OKTA), Splunk
Will ServiceNow Beat Analyst Estimates in Q1 2019?(Continued from Prior Part)Expanding customer relationships ServiceNow (NOW) reported its best-ever fourth-quarter results earlier this year and is satisfied with its market position of being a
Will ServiceNow Beat Analyst Estimates in Q1 2019?(Continued from Prior Part)Digital transformation of enterprises ServiceNow (NOW) aims to be a strategic partner in the digital transformation of global enterprises. Over the last few years,
ServiceNow's (NOW) first-quarter 2019 results are likely to benefit from new contract wins, robust alliances and ongoing digital transformation.
Will ServiceNow Beat Analyst Estimates in Q1 2019?(Continued from Prior Part)Revenue growth for 2019 estimated at 31.5%ServiceNow (NOW) is banking on companies’ digital transformation to drive sales. Business transformation has been a primary
Will ServiceNow Beat Analyst Estimates in Q1 2019?Revenue growth estimated at 30% in Q1 2019High growth tech company ServiceNow (NOW) is set to announce its first-quarter earnings results on April 24, 2019. Analysts expect the company to post sales
ServiceNow (NOW), Forbes’ No. 1 World’s Most Innovative Company in 2018, and Second Harvest Food Bank of Santa Clara and San Mateo Counties (Second Harvest), one of the largest food banks in the nation, announced a partnership to address hunger and food insecurity issues that many students face every day on college campuses in Santa Clara County.
ServiceNow, Inc.'s (NYSE:NOW): ServiceNow, Inc. provides enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. The US$43b market-cap company announced a l...
Jim Cramer chats with ServiceNow CEO John Donahoe to hear how the platform is helping clients bring better experiences to employees and customers.