Revenue- demonstrates consistent long-term growth, 5-year average at 34%
Profits – 2022 TTM has reduced
Net margin - quite low for tech company with just 2.79%
P/E – extremely high at 553 when S&P500 is at 21
Liabilities - debt ratio is at 0.62 which is within normal limits, Net Debt/ EBITDA is negative – no problems with debt
Conclusion – it is very likely to continue bear move with this financial performance
Technical Analysis (Elliott Waves):
Since the completion of the global correction in wave 4 which completed in February 2016we can observe an explosive growth in wave
Main scenario suggests that wave 5 takes shape of an Ending Diagonal with ABC patterns in each motive sub-wave 1-3-5
Waves 1 to 3 have completed and wave 4 is currently developing as a complex series of patterns
This maybe a good opportunity for a short position if $521.04 holds confirming that it is an Extended Flat formation in the link wave X which suggests that there will be another move to the downside in wave Y with target area of $300-$360
This is a higher timeframe to reflect the full history of ServiceNow and to provide full wave count:
What do you think about ServiceNow and its short term prospects? Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves.
Thanks for the post... Interesting, I've seen a number of big name stocks with the identical wave sequence... AMZN, GOOG to name a couple. With this current short squeeze and the typical August dearth of volume it's stretching credulity but I'm ready to pull the trigger. I would not doubt there's a shakeout first.
vitalalyt
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@oliverrathbun, thanks for your thoughts;) I think that there are few tickers that have corrected pretty well and normalised their PE to start buying them but also still a lot of hype like this one which have still got a lot to go to make it attractive for investment (btw don't question the product of ServiceNow which is widely used in all the corporates).