ServiceNow shares cratered 17.3% on Thursday to $85.21 after a coordinated wave of seven Wall Street downgrades sent the enterprise software giant’s stock to its worst single-day decline in years. Trading volume surged to 34.2M shares as the company’s market capitalization fell to $89.1B.
The sell-off was triggered by a brutal round of analyst revisions spanning multiple major firms. Citizens slashed its price target from $260 to $157 while maintaining a Market Outperform rating. Keybanc cut its target from $115 to $85 with an Underweight rating, while BMO Capital reduced its outlook from $120 to $115 with an Outperform stance. Needham dropped its target from $155 to $115 but kept a Buy rating. Baird moved from $125 to $118 with an Outperform rating, BTIG cut from $185 to $150 while maintaining Buy, and Piper Sandler lowered its target from $200 to $140 with an Overweight rating. The average new price target across the seven firms stands at $126, representing a 24.1% reduction from prior levels.
The magnitude of the downgrades reflects a dramatic reassessment of ServiceNow’s valuation and near-term prospects. The coordinated nature of the analyst actions—spanning firms with varying degrees of bullishness—suggests fundamental concerns rather than isolated pessimism. Despite the severity of Thursday’s decline, several analysts maintained constructive ratings even as they slashed price targets, indicating potential support for the stock at current levels but uncertainty about the path forward.
Volume tells the story of panic selling. The 34.2M shares traded Thursday represents a massive surge in activity as investors rushed to reassess positions following the downgrades. The breadth of selling pressure across the session underscores how quickly sentiment can shift in high-valuation software names when Wall Street recalibrates expectations.
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