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Northcoast Downgrades Fiserv (FISV) to Neutral
Yahoo Finance· 2026-02-08 10:21
Fiserv Inc. (NASDAQ:FISV) is one of the worst AI stocks to invest in according to Reddit. On February 2, Northcoast analyst Kartik Mehta downgraded Fiserv from Buy to Neutral. In other news, on January 28, ServiceNow and Fiserv announced an expanded commitment to accelerate AI-driven transformation within financial services. Fiserv will scale its use of ServiceNow Now Assist for Financial Services Operations and IT Service Management to enhance operations across its IT and customer service environments. T ...
The Zacks Analyst Blog ServiceNow, Alphabet, NVIDIA and DXC
ZACKS· 2025-04-15 12:45
Core Viewpoint - ServiceNow's stock has significantly underperformed in 2025, with a year-to-date decline of 25.9%, compared to the Zacks Computer & Technology sector's decline of 14.4% and the Computers – IT Services industry's decline of 18.9% [2] Company Performance - The macroeconomic environment has worsened due to tariffs imposed by the U.S. government, negatively impacting ServiceNow's federal business and leading to an expected unfavorable forex impact of approximately $175 million for 2025 [3] - For Q1 2025, subscription revenues are projected to be between $2.995 billion and $3 billion, indicating a year-over-year growth of 18.5-19% on a GAAP basis, while unfavorable forex is expected to reduce revenues by $40 million [10] - Subscription revenues for 2025 are anticipated to be between $12.635 billion and $12.675 billion, reflecting an 18.5% to 19% increase from 2024 [11] Strategic Developments - ServiceNow has launched the Yokohama platform, enhancing its portfolio with new AI agents across various domains, which is expected to improve productivity and client acquisition [5] - The partnership with Alphabet's Google Cloud has been expanded to include ServiceNow's Now Platform and a full suite of workflows available on Google Cloud Marketplace [6] - Collaborations with NVIDIA have led to the development of AI agents for the telecom industry, integrating advanced AI technologies into ServiceNow's offerings [7] - ServiceNow is actively pursuing acquisitions, including plans to acquire Logik.ai and the Quality 360 solution from Advania, aimed at strengthening its capabilities in AI and manufacturing [9] Financial Outlook - The Zacks Consensus Estimate for 2025 earnings is $16.23 per share, reflecting a 16.59% increase over 2024, despite a recent downward revision [12] - The consensus for 2025 revenues is set at $13 billion, indicating an 18.39% growth compared to 2024 [13] Valuation and Market Position - ServiceNow's stock is considered overvalued, with a Value Score of F, and is trading at a forward Price/Sales ratio of 11.86X, significantly higher than the sector average of 5.34X [14] - The stock is currently exhibiting a bearish trend, trading below both the 200-day and 50-day moving averages [14] - Despite a strong GenAI portfolio and partner base, the unfavorable forex environment and high valuation make the stock less attractive for value investors, leading to a Zacks Rank of 4 (Sell) [15]