Here’s why ServiceNow’s inventory soared in every week of dismal tech earnings stories
If you’re a daily reader of this publication, chances are high you realize that it hasn’t been an ideal yr for a lot of tech firm shares — one wherein giants like Meta, Amazon, and Alphabet have been mauled by the markets after lower than stellar earnings stories.
Even an enterprise stalwart like Salesforce is behind hounded by activist buyers.
The truth is that few have been spared, whether or not startups or established public corporations. We’ve seen a litany of tales on hiring freezes, layoff bulletins, and tech shares taking bigger hits than an NFL quarterback behind a nasty offensive line — in different phrases, getting crushed.
SaaS shares particularly are having a tough yr, so when a SaaS inventory does nicely, nicely, that’s news. And that’s what occurred to ServiceNow this week when it reported Q32022 earnings.
It bucked the percentages with a principally optimistic earnings report — good income, good steerage, the entire 9 yards — and consider it or not, Wall Street rewarded the corporate, with the refill over 13% on the bell on Thursday, a quantity that held regular all through the day. (It was down round 1% thus far in buying and selling at the moment.)
Maybe we’re not the one ones on the lookout for some good news. Perhaps buyers are, too. But what led to this optimistic 2022 earnings anomaly? To discover out, let’s discover the earnings report and the affect of hiring former SAP CEO Bill McDermott to steer the corporate.
A take a look at the numbers
Given the overall carnage we’ve seen within the public markets for tech earnings this quarterly cycle — Snap kicked issues off with a raspberry, adopted rapidly by different main tech retailers failing to satisfy Wall Street’s stringent expectations — the ServiceNow share-price boomlet caught our eye and made us curious what the corporate had managed that was so worthy of investor reward.
Comments are closed.