Why Investors Shouldn’t Be Surprised By ServiceNow, Inc.’s (NYSE:NOW) 34% Share Price Surge
Those holding ServiceNow, Inc. (NYSE:NOW) shares would be relieved that the share price has rebounded 34% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Looking back a bit further, it’s encouraging to see the stock is up 35% in the last year.
After such a large jump in price, ServiceNow may be sending strong sell signals at present with a price-to-sales (or “P/S”) ratio of 17.4x, when you consider almost half of the companies in the Software industry in the United States have P/S ratios under 4.6x and even P/S lower than 1.7x aren’t out of the ordinary. However, the P/S might be quite high for a reason and it requires further investigation to determine if…
