Why AI Stock ServiceNow Got Thumped on Thursday

Core Viewpoint - ServiceNow's stock faced downward pressure following two consecutive price target cuts by analysts, leading to a more than 3% decline in share price while the S&P 500 saw a slight gain [1]. Analyst Price Target Cuts - Deutsche Bank analyst Brad Zelnick reduced his price target for ServiceNow from $1,300 to $1,050 but maintained a buy recommendation [2]. - TD Cowen analyst Derrick Wood also cut his target from $1,300 to $1,100, while keeping his buy recommendation intact [3]. Reasons for Price Target Adjustments - Zelnick's reasons for the price target cut were not immediately clear, while Wood cited concerns over the impact of the Trump administration's Department of Government Efficiency (DOGE) initiative on ServiceNow's public-sector business [4]. Market Sentiment and Upcoming Earnings - The market is showing nervousness ahead of ServiceNow's upcoming earnings release, scheduled for April 23, with analysts expecting year-over-year growth in revenue and profitability [5]. - Consensus estimates for revenue and earnings per share are $3.09 billion and $3.83, representing year-over-year improvements of 19% and 12%, respectively [5]. Long-term Outlook - Despite potential challenges in the government sector, ServiceNow's success in the private sector suggests a positive long-term outlook for the company [6].