If you are a regular reader of this publication, most likely you know what it is was not a great year for many technology stocks, one in which giants I like it Meta, amazon, and Alphabet were hammered by markets after less-than-stellar earnings reports.
Even an enterprise as strong as Salesforce is under attack activist investors.
The fact is that few have been spared, be it startups or established public companies. We’ve seen a lot of stories about hiring freezes, layoff noticesand technology stocks take bigger hits than an NFL quarterback behind a bad offensive line — in other words, getting crushed.
Specifically, SaaS stocks hard year so when a SaaS stock does well, it’s news. And that’s what happened to ServiceNow this week when it reported Q3 2022 earnings.
It beat the odds with a mostly positive earnings report — good earnings, good guidance, the whole nine yards — and, believe it or not, Wall Street rewarded the company with shares up more than 13% on Thursday, a number that’s holding steady during the day. (It is currently down about 1% during trading.)
We may not be the only ones looking for good news. Maybe investors too. But what led to this positive earnings anomaly in 2022? To find out, let’s examine the earnings report and the implications of hiring former SAP CEO Bill McDermott as the company’s CEO.
A look at the numbers
Given the overall carnage we’ve seen in the public markets for tech earnings this quarterly cycle – Snap started the business with Raspberry followed quickly by other top tech shops that fell short of Wall Street’s strict expectations — the boom in ServiceNow’s stock price caught our attention and made us wonder what the company had accomplished that was so worthy of investor praise.
https://techcrunch.com/2022/10/28/heres-why-servicenows-stock-soared-in-a-week-of-dismal-tech-earnings-reports/
