ServiceNow (NOW) Is One Of The Stocks That Could Collapse Because Of AI

ServiceNow Inc. (NYSE:NOW) is one of the 10 Stocks That Will Collapse Because of AI. TD Cowen analyst Derrick Wood lowered the firm’s price target on ServiceNow Inc. (NYSE:NOW) from $185 to $140 while maintaining a Buy rating on April 16. The firm’s downward-revised price target still reflects a further 37% upside from current levels. The firm said its channel checks continue to point to solid growth trends, with positive signals around AI product adoption, broader platform usage, and large-deal activity.

ServiceNow Inc. (NYSE:NOW) is one of the 10 Stocks That Will Collapse Because of AI.

In addition to TD Cowen, Deutsche Bank cut its price target on ServiceNow Inc. (NYSE:NOW) from $180 to $135 while keeping a Buy rating on the stock the same day. According to the firm, the company is controlling what it can as it heads into the first quarter earnings. This reflects a focus on managing factors within its control despite the challenging environment.

The negativity among analysts had already started to build earlier when Mizuho Securities analyst Gregg Moskowitz cut the firm’s price target on ServiceNow Inc. (NYSE:NOW) from $190 to $150 on April 14. The price target adjustment came as part of its first-quarter preview for large-cap software companies. Mizuho Securities said its channel checks were broadly positive, with cloud trends and usage data indicating solid performance and AI adoption remaining very strong. However, the firm noted that demand in the cybersecurity segment was mixed. The latest price target cuts further reinforce this more cautious outlook.

ServiceNow Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The company is located in Santa Clara, California, and was founded in June 2004 by Frederic B. Luddy.

While we acknowledge the risk and potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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