Why ServiceNow Stock Tumbled by Almost 8% Today
Many stocks declined during the market's rout on Monday, but business software company ServiceNow (NYSE: NOW) lost more than most. On news of yet another acquisition, investors traded out of the specialty tech stock, leaving with a loss of just under 8% on the day. That was a steeper fall than the S&P 500 index's 2.7% decline.ServiceNow announced that it has signed a definitive agreement to purchase Moveworks, a privately held artificial intelligence (AI) solutions developer that targets large enterprises. The acquirer said that it will combine Moveworks' front-end AI assistant and search technology with its native AI technology. For its new asset, ServiceNow is to pay $2.85 billion in a combination of cash and stock. The company did not get specific about the mix.Continue reading
Many stocks declined during the market's rout on Monday, but business software company ServiceNow (NYSE: NOW) lost more than most. On news of yet another acquisition, investors traded out of the specialty tech stock, leaving with a loss of just under 8% on the day. That was a steeper fall than the S&P 500 index's 2.7% decline.
ServiceNow announced that it has signed a definitive agreement to purchase Moveworks, a privately held artificial intelligence (AI) solutions developer that targets large enterprises. The acquirer said that it will combine Moveworks' front-end AI assistant and search technology with its native AI technology.
For its new asset, ServiceNow is to pay $2.85 billion in a combination of cash and stock. The company did not get specific about the mix.
