Why is ServiceNow so Cheap?

Those technology issues at work cost a lot of money to fix.

Andrew Willis 17 February, 2022 | 7:22PM
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Andrew Willis: It’s hard to imagine a situation where IT support for wide-reaching computer networks would be more in demand. With both workers and customers stuck at home right now, human resources systems and customer service software have been critical.

A lot of companies have had to upgrade their systems on short notice – shining a spotlight on bigger technology problems post-pandemic. Senior equity analyst Dan Romanoff says we’re often seeing corporate IT infrastructures exposed as inadequate for the current remote environment.

And for future environments, ServiceNow (NOW) has also found a market for specific verticals, like the communications sector, for example. For investors, that means growth opportunities ahead – and switching costs that help make a moat around each of those thousands of annual contracts, in the millions.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
ServiceNow Inc430.12 USD-0.67Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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