Short interest for ServiceNow gives investors a sense of the degree to which investors are betting on the decline of ServiceNow's stock. Short interest data is updated every two weeks.

ServiceNow Stock (NYSE:NOW), Short Interest Report

ServiceNow

ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.

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With the earnings season now halfway through, the percentage of S&amp;P 500 companies reporting positive earnings surprises and the magnitude of earnings surprises were above their 10-year averages.

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Why Caterpillar Shares Are Trading Lower By Around 7%? Here Are Other Stocks Moving In Thursday&#39;s Mid-Day Session

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Wall Street suffers a double blow in Thursday’s session, as softer-than-expected revenue forecasts from Meta Platforms Inc. (NASDAQ:META) are being compounded by weaker-than-expected economic growth and higher inflationary pressures last quarter, raising fears of a stagflation phase 

Stocks Drop, Tech Tumbles With Meta&#39;s Weak Outlook, Q1 Stagflation Fears; Gold Miners Advance: What&#39;s Driving Markets Thursday?

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ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) has outperformed the market over the past 5 years by 9.4% on an annualized basis producing an average annual return of 21.22%. Currently, ServiceNow has a market capitalization of $142.37 billion. 
Buying $1000 In NOW: If an investor had bought $1000 of NOW stock 5 years ago, it would be worth $2,569.82 today based on a price of $693.21 for NOW at the time of writing.
<h3>ServiceNow's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1714671032_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Trading Ideas

Here's How Much $1000 Invested In ServiceNow 5 Years Ago Would Be Worth Today

ServiceNow's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) short percent of float has fallen 9.43% since its last report. The company recently reported that it has 2.95 million shares sold short, which is 1.44% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.91 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>ServiceNow Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1714484722_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for ServiceNow has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing ServiceNow's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, ServiceNow's peer group average for short interest as a percentage of float is 4.46%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

How Is The Market Feeling About ServiceNow?

Corporate <a href="https://www.benzinga.com/markets/equities/24/04/38471231/strong-quarterly-earnings-fuel-market-optimism-despite-inflation-concerns-slowing-economic-growt">earnings came to the market&#8217;s rescue in the past week,</a> helping to overcome rate fears. As we look ahead to the unfolding week, it remains to be seen whether the tech earnings deluge can keep the rally&#8217;s momentum going. 
The Week That Was: High-profile Magnificent Seven earnings panned out mostly positively for the market, with Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) the outlier. The social media giant&#8217;s stock fell sharply as traders fretted over the soft second-quarter revenue guidance and the company&#8217;s massive AI investment plans. 
Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) managed to appease the Street despite the double miss as it held out the promise of an expeditious launch of a more affordable EV. 
With the earnings season now halfway through, the percentage of S&amp;P 500 companies reporting positive earnings surprises and the magnitude of earnings surprises were above their 10-year averages, <a href="https://insight.factset.com/sp-500-earnings-season-update-april-26-2024?utm_source=Direct&amp;utm_medium=Email&amp;utm_campaign=FO-04-26-2024&amp;utm_content=httpsinsightfactsetcomsp500earningsseasonupdateapril262024">said </a>FactSet in a report.
The blended first-quarter earnings growth of S&amp;P 500 companies is estimated at 3.5%, up from the 0.6% growth estimated in the week ended April 19, the financial data analytics firm said. If the trend holds, the S&amp;P 500 companies are on track to report earnings growth for the third straight quarter.
Of the 11 S&amp;P sector classes, eight sectors reported year-over-year earnings growth, led by communication services, utilities, IT, and consumer discretionary sectors. On the other hand, healthcare, energy, and materials have reported year-over-year earnings declines.
See Also: <a href="https://www.benzinga.com/money/best-tech-stocks">Best Tech Stocks Right Now</a>
Look Ahead: The unfolding week will see 175 S&amp;P 500 companies and 6 Dow 30 components releasing their quarterly scorecards. The earnings roster includes two Magnificent Seven companies, namely Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Amazon, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), e-commerce retailers, payment processors, restaurants, and energy and REIT companies.
Earnings from Apple and Amazon could be market-moving, given the weighting of these stocks in the S&amp;P 500 Index. Also, Apple is considered a bellwether, given its exposure to consumers. Morgan Stanley&#8217;s Erik Woodring expects Apple to report a slightly beat but guide June quarter revenue down. 
Investors are likely to keep a close eye on performance in China, Apple&#8217;s updated capital return framework, and capital expenditures, the analyst said.
That said, the analyst is positive on the stock ahead of its annual Worldwide Developers&#8217; Conference due on June 10th. &#8220;With Apple&#8217;s biggest WWDC event on June 10th, we&#8217;d buy post-earnings weakness,&#8221; he said.
Amazon will likely continue to report double-digit sales and profit growth in the first quarter, according to Telsey Advisory Group analyst Joseph Feldman. The analyst premised his optimism on the strength of online spending, gains from expanded merchandise and faster fulfillment, and stabilization (and growth) of AWS. 
&#8220;Importantly, we expect [a] greater focus on profits supported by the growth of higher margin categories and services, such as advertising, media, and AWS (partly helped by AI-related upgrades), the redesigned distribution network&#8230;.. and cost savings,&#8221; he said.
Notable among the <a href="https://www.benzinga.com/calendars/earnings">companies reporting earnings this week</a> are:
Monday 
<ul>
<li>Before the bell: JinkoSolar Holding Co., Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JKS#NYSE">JKS</a>), ON Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>), Koninklijke Philips N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHG#NYSE">PHG</a>), SoFi Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>)</li>
<li>After the close: F5, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFIV#NASDAQ">FFIV</a>), Everest Group, Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EG#NYSE">EG</a>), NXP Semiconductors N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NXPI#NASDAQ">NXPI</a>), Lattice Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSCC#NASDAQ">LSCC</a>), MicroStrategy Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>), Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>), Qiagen N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QGEN#NYSE">QGEN</a>), Rambus Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RMBS#NASDAQ">RMBS</a>), Sanmina Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SANM#NASDAQ">SANM</a>), Yum China Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUMC#NYSE">YUMC</a>)</li>
</ul>
Tuesday 
<ul>
<li>Before the bell: 3M Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMM#NYSE">MMM</a>), Archer-Daniels-Midland Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>), The Coca-Cola Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KO#NYSE">KO</a>), Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), GE HealthCare Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEHC#NASDAQ">GEHC</a>), McDonald&#8217;s Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MCD#NYSE">MCD</a>), Molson Coors Beverage Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAP#NYSE">TAP</a>), PayPal Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), Tenet Healthcare Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THC#NYSE">THC</a>)</li>
<li>After the close: Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), ONEOK, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OKE#NYSE">OKE</a>), Pinterest, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>), Starbucks Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>), Skyworks Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>), Unum Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNM#NYSE">UNM</a>). Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), Stryker Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYK#NYSE">SYK</a>), RenaissanceRe Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RNR#NYSE">RNR</a>), Prudential Financial, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRU#NYSE">PRU</a>), Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>), The Clorox Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLX#NYSE">CLX</a>), Chesapeake Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>)</li>
</ul>

Wednesday 
<ul>
<li>Before the bell: Bausch + Lomb Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLCO#NYSE">BLCO</a>), CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>), DuPont de Nemours, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DD#NYSE">DD</a>), The Estée Lauder Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EL#NYSE">EL</a>), Garmin Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRMN#NYSE">GRMN</a>), GSK plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GSK#NYSE">GSK</a>), The Kraft Heinz Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KHC#NASDAQ">KHC</a>), KKR &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>), Logitech International S.A. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LOGI#NASDAQ">LOGI</a>), Mastercard Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>), Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>), Pfizer, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PFE#NYSE">PFE</a>), Wingstop Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WING#NASDAQ">WING</a>), Yum! Brands, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUM#NYSE">YUM</a>)</li>
<li>After the close: Albemarle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>), The Allstate Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALL#NYSE">ALL</a>), Beazer Homes USA, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BZH#NYSE">BZH</a>), C.H. Robinson Worldwide, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHRW#NASDAQ">CHRW</a>), Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>), eBay Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>), Etsy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETSY#NASDAQ">ETSY</a>), First Solar, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FSLR#NASDAQ">FSLR</a>), Freshworks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FRSH#NASDAQ">FRSH</a>), Kulicke and Soffa Industries, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLIC#NASDAQ">KLIC</a>), Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>), MetLife, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MET#NYSE">MET</a>), MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>), NETGEAR, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTGR#NASDAQ">NTGR</a>), Qorvo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>), Sunnova Energy International Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOVA#NYSE">NOVA</a>), Upwork Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UPWK#NASDAQ">UPWK</a>), Wolfspeed, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WOLF#NYSE">WOLF</a>), Zillow Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZG#NASDAQ">ZG</a>)</li>
</ul>
Thursday 
<ul>
<li>Before the bell: ArcelorMittal S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MT#NYSE">MT</a>), ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>), CyberArk Software Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CYBR#NASDAQ">CYBR</a>), Ferrari N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RACE#NYSE">RACE</a>), Intercontinental Exchange, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ICE#NYSE">ICE</a>), Kimco Realty Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KIM#NYSE">KIM</a>), Moderna, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRNA#NASDAQ">MRNA</a>), PENN Entertainment, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PENN#NASDAQ">PENN</a>), Wayfair Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/W#NYSE">W</a>), Zoetis Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZTS#NYSE">ZTS</a>)</li>
<li>After the close: Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), BigBear.ai Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBAI#NYSE">BBAI</a>), BJ&#8217;s Restaurants, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BJRI#NASDAQ">BJRI</a>), Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>), Cloudflare, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NET#NYSE">NET</a>), Coinbase Global, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), Consolidated Edison, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ED#NYSE">ED</a>), DraftKings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DKNG#NASDAQ">DKNG</a>), Five9, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVN#NASDAQ">FIVN</a>), Expedia Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXPE#NASDAQ">EXPE</a>), Illumina, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>), Live Nation Entertainment, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LYV#NYSE">LYV</a>), United States Steel Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>), Regency Centers Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/REG#NASDAQ">REG</a>), Reinsurance Group of America, Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RGA#NYSE">RGA</a>), Pioneer Natural Resources Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXD#NYSE">PXD</a>), Opendoor Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPEN#NASDAQ">OPEN</a>), Monster Beverage Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>)</li>
</ul>
Friday 
<ul>
<li>Before the bell: American Axle &amp; Manufacturing Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXL#NYSE">AXL</a>), Cboe Global Markets, Inc. (CBOE: CBOE), Fluor Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLR#NYSE">FLR</a>), The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>), Owens &amp; Minor, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMI#NYSE">OMI</a>), XPO, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPO#NYSE">XPO</a>)</li>
</ul>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an exchange-traded fund that tracks the performance of the broader S&amp;P 500 Index, ended Friday&#8217;s session up 0.95% at $508.26, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>The ETF has pulled back from its all-time high (intraday) of $524.61 hit on March 28. The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), an ETF levered more to high-profile, non-financial tech stocks, rose 1.54% to $431.
Read Next: <a href="https://www.benzinga.com/news/earnings/earnings-misses/24/04/38464570/us-energy-stocks-fall-following-oil-giants-subdued-earnings-reports">US Energy Stocks Fall Following Oil Giants&#8217; Subdued Earnings Reports</a>

Shares of Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) fell sharply during Thursday's session after the company reported better-than-expected first-quarter EPS but missed <a href="https://www.benzinga.com/news/earnings/24/04/38433251/why-is-equipment-giant-caterpillar-stock-plunging-today">revenue estimates</a>.
Caterpillar reported a first-quarter fiscal 2024 revenue of $15.8 billion, a slight decrease of 0.4% year-over-year, missing the consensus of $16.216 billion. CAT's adjusted earnings of $5.60 per share, compared to $4.91 a year ago, topped the consensus of $5.14, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Caterpillar shares dipped 6.6% to $339.37 on Thursday.
Here are some other stocks moving in today&#8217;s mid-day session.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Barfresh Food Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRFH#NASDAQ">BRFH</a>) surged 87.2% to $2.05.</li>
<li>Safe &amp; Green Holdings Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGBX#NASDAQ">SGBX</a>) shares jumped 80% to $0.26. Safe &amp; Green Holdings said it has entered into an agreement to produce 4 modular electrical distribution centers as part of a multi-unit order for a client serving the big box retailer market.</li>
<li>Processa Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PCSA#NASDAQ">PCSA</a>) shares gained 37.2% to $2.2250 after HC Wainwright &amp; Co initiated coverage on the stock with a Buy rating and announced an $8 price target.</li>
<li>Aclarion, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACON#NASDAQ">ACON</a>) rose 35% to $0.3899.</li>
<li>reAlpha Tech Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIRE#NASDAQ">AIRE</a>) gained 28.5% to $1.4906 after jumping 93% on Wednesday.</li>
<li>OptiNose, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OPTN#NASDAQ">OPTN</a>) rose 27.5% to $1.1806 after the company issued corporate updates, expecting to produce positive income from operations for the full year 2025.</li>
<li>Intelligent Living Application Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILAG#NASDAQ">ILAG</a>) shares climbed 21.3% to $0.6550 after gaining over 12% on Wednesday.</li>
<li>P.A.M. Transportation Services, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PTSI#NASDAQ">PTSI</a>) surged 19.8% to $17.42 after the company announced a self-tender offer to purchase up to 550,000 shares at a price not less than $15.50-$18.00 per share.</li>
<li>SuperCom Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPCB#NASDAQ">SPCB</a>) climbed 19% to $0.2663. SuperCom received over $5 million in new orders from European Governments.</li>
<li>Ultralife Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ULBI#NASDAQ">ULBI</a>) climbed 16.6% to $10.19 after the company reported better-than-expected quarterly financial results.</li>
<li>Impinj, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PI#NASDAQ">PI</a>) gained 16% to $140.21 after reporting better-than-expected first-quarter financial results.</li>
<li>Cidara Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CDTX#NASDAQ">CDTX</a>) gained 13.9% to $14.00 after the company announced the divestiture of rezafungin to Mundipharma, reacquired global development and commercial rights to CD388 and announced $240 million in private placement financing.</li>
<li>Sleep Number Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNBR#NASDAQ">SNBR</a>) surged 11.5% to $15.13 following first-quarter results.</li>
<li>Predictive Oncology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/POAI#NASDAQ">POAI</a>) rose 10.7% to $1.49. Fujifilm and Predictive Oncology announced collaboration to reduce protein interference in bacterial endotoxin detection testing of biopharmaceuticals.</li>
<li>Strategic Education, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRA#NASDAQ">STRA</a>) jumped 10% to $110.78 following upbeat results.</li>
<li>Tyler Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TYL#NYSE">TYL</a>) gained 9.6% to $459.39 after the company reported better-than-expected first-quarter EPS and sales. Additionally, the company provided upbeat guidance for FY24.</li>
<li>TransUnion (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRU#NYSE">TRU</a>) climbed 8.9% to $74.83 after the company reported better-than-expected first-quarter financial results. The company also provided upbeat guidance for second quarter</li>
<li>AstraZeneca PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NYSE">AZN</a>) rose 5.8% to $75.35 following a first-quarter revenue beat.</li>
<li>Teradyne, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TER#NYSE">TER</a>) gained 5% to $105.71 after the company posted upbeat first-quarter results and issued strong second-quarter forecast.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>E-Home Household Service Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EJH#NASDAQ">EJH</a>) shares dipped 75% to $0.7192.</li>
<li>Chicken Soup for the Soul Entertainment, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSSE#NASDAQ">CSSE</a>) fell 39.3% to $0.2581. Chicken Soup For The Soul Entertainment received delinquency letter from the Nasdaq.</li>
<li>Hanryu Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HRYU#NASDAQ">HRYU</a>) shares dropped 37% to $0.3330. Hanryu Holdings received delinquency notice from the Nasdaq for late annual report filing.</li>
<li>ATN International, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATNI#NASDAQ">ATNI</a>) fell 29% to $20.39 as the company posted weak quarterly sales and slashed FY24 revenue forecast.</li>
<li>Brand Engagement Network, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNAI#NASDAQ">BNAI</a>) fell 27.3% to $2.71.</li>
<li>Huize Holding Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HUIZ#NASDAQ">HUIZ</a>) shares dipped 26% to $0.39.</li>
<li>Cyclacel Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CYCC#NASDAQ">CYCC</a>) fell 24% to $1.7283.</li>
<li>Hertz Global Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) dipped 23% to $4.4299 after the company mixed first-quarter financial results.</li>
<li>Organogenesis Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORGO#NASDAQ">ORGO</a>) fell 17.8% to $2.44</li>
<li>Orion Group Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORN#NYSE">ORN</a>) fell 17% to $6.60 following weak quarterly sales.</li>
<li>JAKKS Pacific, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JAKK#NASDAQ">JAKK</a>) fell 16.4% to $19.58 following a wider-than-expected quarterly loss.</li>
<li>Zapp Electric Vehicles Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZAPP#NASDAQ">ZAPP</a>) fell 16.4% to $3.3001 after dipping 15% on Wednesday.</li>
<li>Brookline Bancorp, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BRKL#NASDAQ">BRKL</a>) dipped 13.8% to $8.23 following downbeat quarterly results.</li>
<li>Ethan Allen Interiors Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETD#NYSE">ETD</a>) fell 13.5% to $28.91 following downbeat quarterly results.</li>
<li>MarineMax, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HZO#NYSE">HZO</a>) shares fell 13.5% to $23.50 after the company posted downbeat quarterly results and slashed FY24 EPS guidance.</li>
<li>ESGL Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ESGL#NASDAQ">ESGL</a>) shares fell 12.9% to $0.5499.</li>
<li>Harley-Davidson, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HOG#NYSE">HOG</a>) declined 12.7% to $34.45 following first-quarter results.</li>
<li>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) shares declined 11.3% to $437.50 after reporting first-quarter results.</li>
<li>Biophytis S.A. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BPTS#NASDAQ">BPTS</a>) fell 9.7% to $8.57. Biophytis announced transfer of ADSs to OTC Market.</li>
<li>International Business Machines Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) fell 8.6% to $168.24 after the company reported mixed first-quarter financial results. The company also announced it will acquire HashiCorp.</li>
<li>Textron Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TXT#NYSE">TXT</a>) shares fell 12% to $82.78 following weaker-than-expected quarterly earnings.</li>
<li>FirstCash Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCFS#NASDAQ">FCFS</a>) dipped 10.6% to $118.00 following weak quarterly sales.</li>
<li>Whirlpool Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>) fell 9.2% to $95.98 following first-quarter results.</li>
<li>BioMarin Pharmaceutical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BMRN#NASDAQ">BMRN</a>) dipped 9% to $83.05 after the company reported first-quarter financial results.</li>
<li>Reliance, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RS#NYSE">RS</a>) fell 8.8% to $285.73 after the company reported worse-than-expected first-quarter financial results.</li>
<li>AZZ Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZZ#NYSE">AZZ</a>) dipped 8.6% to $75.28. AZZ announced a proposed public offering of 4 million shares of common stock.</li>
<li>Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) shares declined 7.7% to $27.03 after the company reported worse-than-expected first-quarter financial results.</li>
<li>Bristol-Myers Squibb Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>) fell 6.8% to $45.50 following first-quarter earnings.</li>
<li>ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) shares fell 5.6% to $704.40 after the company reported first-quarter financial results.</li>
<li>Graco Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GGG#NYSE">GGG</a>) shares slipped 5.2% to $84.67 following downbeat first-quarter results.</li>
</ul>
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Why Caterpillar Shares Are Trading Lower By Around 7%? Here Are Other Stocks Moving In Thursday's Mid-Day Session

Wall Street suffers a double blow in Thursday&#8217;s session, as softer-than-expected revenue forecasts from Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) are being compounded by weaker-than-expected economic growth and higher inflationary pressures last quarter, raising fears of a stagflation phase <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38434513/us-growth-slows-in-q1-yet-inflation-acceleration-signals-stagflation-the-worst-poss">for the U.S. economy.</a>
The U.S. economy grew by a 1.6% annualized pace in Q1 2024, slowing down sharply from the 3.4% pace in the previous quarter and missing expectations of a growth rate of 2.5%. Inflation, as measured by the Personal Consumption Expenditure (PCE) price index, substantially accelerated from a 1.8% to 3.4% annualized pace, with the underlying measure of core PCE escalating to 3.7%. 
The elite group of Magnificent Seven stocks <a href="https://www.benzinga.com/markets/equities/24/04/38436183/magnificent-7-tumble-wipe-out-300-billion-on-metas-weak-guidance-q1-stagflation-woes">wiped out nearly $300 billion in market value</a> earlier this morning, prior to marginally curbing losses by 1 p.m. in New York. 
The S&amp;P 500 and the tech-heavy Nasdaq 100 dropped by 1% and 1.2% respectively, while blue chips in the Dow Jones Industrial Average slightly underperformed, declining by 1.4%. 
Meta Platforms experienced a double-digit decline, pulling down both the tech index and the communication services sector, which saw its worst day since late October 2023.
Only a few industries managed to notch gains, with gold miners in the spotlight following stronger-than-expected quarterly results by Newmont Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>). The VanEck Gold Miners ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GDX#NYSE">GDX</a>) rose 2.7%. 
Gold also saw an increase, rising by 0.7%, outperforming both stocks and bonds amid growing signals of stagflation from the economy. Crude oil inched lower, with the West Texas Intermediate (WTI) light crude down 0.4% to $82 a barrel. 
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) held steady around $64,500. 
In the bond market, Treasury yields surged, with the policy-sensitive 2-year yields rising to 5% as traders further dialed back expectations of Fed rate cuts. 
<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,026.87</td>
<td>-0.9%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,975.61</td>
<td>-1.0%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,333.65</td>
<td>-1.1%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>37,923.49</td>
<td>-1.4%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:55 p.m. EDT </figcaption></figure>
<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>
<ul>
<li>Meta Platforms tanked 11% – its worst performance since October 2022 – despite beating both earnings and revenue forecasts last quarter, as weaker-than-expected guidance disappointed traders.</li>
<li>Other companies reacting to earnings were International Business Machines Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NASDAQ">IBM</a>) down 9%, Service Now Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) down 5%, Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) up 2.9%, Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) up 5.4%, Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) down 1.6%, United Rentals Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/URI#NYSE">URI</a>) up 5.5%, with all of them reporting Wednesday after the close. </li>
<li>Reporting Thursday in the pre-market, Merck &amp; Company Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>) up 2.5%, Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>) down 6.6%, Comcast Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) down 6%, Union Pacific Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNP#NYSE">UNP</a>) up 4.3%, S&amp;P Global Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPGI#NYSE">SPGI</a>) flat, Honeywell International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HON#NASDAQ">HON</a>), down 1.4%, Southern Copper Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCCO#NYSE">SCCO</a>) up 1.7%, Altria Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>) up 1%, Valero Energy Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>) down 0.5%, Carrier Global Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CARR#NYSE">CARR</a>) up 8% and Astrazeneca plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>) up 5.7%. </li>
<li>Notable names reporting after the close include Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) , Boyd Gaming Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BYD#NYSE">BYD</a>), Capital One Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), Gilead Sciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GILD#NASDAQ">GILD</a>), Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Juniper Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>), KLA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>), Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>), Teladoc Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>), T-Mobile US, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>) and Western Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDC#NASDAQ">WDC</a>).</li>
</ul>
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Photo: Shutterstock

Stocks Drop, Tech Tumbles With Meta's Weak Outlook, Q1 Stagflation Fears; Gold Miners Advance: What's Driving Markets Thursday?

Morgan Stanley analyst Keith Weiss maintains ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) with a Overweight and raises the price target from $814 to $830.

Price Target

Analyst Ratings

Morgan Stanley Maintains Overweight on ServiceNow, Raises Price Target to $830

Keybanc analyst Jason Ader maintains ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) with a Overweight and lowers the price target from $1000 to $950.

Keybanc Maintains Overweight on ServiceNow, Lowers Price Target to $950

BMO Capital analyst Keith Bachman maintains ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) with a Outperform and lowers the price target from $850 to $830.

BMO Capital Maintains Outperform on ServiceNow, Lowers Price Target to $830

UBS analyst Karl Keirstead maintains ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) with a Buy and lowers the price target from $920 to $875.

UBS Maintains Buy on ServiceNow, Lowers Price Target to $875

U.S. stock futures were lower this morning, with the Dow futures falling over 200 points on Thursday.
Shares of International Business Machines Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) fell sharply in today's pre-market trading after the company reported mixed first-quarter financial results. The company also announced it <a href="http://IBM Q1 Earnings: Revenue Miss, EPS Beat, HashiCorp Acquisition, AI Strategy Strength And More">will acquire HashiCorp</a>.
IBM's first-quarter revenue increased 1% year-over-year to $14.46 billion, which missed the consensus estimate of $14.55 billion, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a> The company reported quarterly adjusted earnings of $1.68 per share, which beat analyst estimates of $1.60 per share.
IBM shares tumbled 8.4% to $168.73 in pre-market trading.
Here are some big stocks recording losses in today's pre-market trading session.
<ul>
<li>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) shares declined 12.9% to $429.25 in pre-market trading after reporting first-quarter results.</li>
<li>MarineMax, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HZO#NYSE">HZO</a>) shares fell 12.8% to $23.70 in pre-market trading after the company posted downbeat quarterly results and slashed FY24 EPS guidance.</li>
<li>Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) shares declined 8.4% to $26.85 in pre-market trading after the company reported worse-than-expected first-quarter financial results.</li>
<li>Vista Energy, S.A.B. de C.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIST#NYSE">VIST</a>) shares fell 8.3% to $39.80 in pre-market trading after the company reported worse-than-expected first-quarter financial results.</li>
<li>Textron Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TXT#NYSE">TXT</a>) shares fell 7.1% to $87.34 in pre-market trading following weaker-than-expected quarterly earnings.</li>
<li>Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) fell 5% to $10.53 pre-market trading.</li>
<li>Graco Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GGG#NYSE">GGG</a>) shares slipped 4.9% to $85.02 in pre-market trading following downbeat first-quarter results.</li>
<li>ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) shares fell 4.1% to $715.50 in pre-market trading after the company reported first-quarter financial results.</li>
</ul>
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Don't forget to check out our p<a href="https://www.benzinga.com/premarket/">remarket coverage here</a>

Pre-Market Outlook

Markets

SNAP

VIST

IBM Reports Weak Revenue, Joins Meta Platforms And Other Big Stocks Moving Lower In Thursday's Pre-Market Session

Needham analyst Mike Cikos reiterates ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) with a Buy and maintains $900 price target.

Reiteration

Needham Reiterates Buy on ServiceNow, Maintains $900 Price Target

The back-and-forth motion in the market continues, with the index futures pointing to a lower opening on Thursday. Meta Platforms, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) <a href="https://www.benzinga.com/news/earnings/24/04/38416273/meta-platforms-q1-earnings-highlights-facebook-owner-beats-estimates-but-guidance-higher-costs-ding">lukewarm second-quarter revenue guidance </a>and commentary regarding investment punctured the stock, while International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) also fell on earnings. The tech space could come under pressure as traders digest these disappointments.
More tech earnings are on tap on Thursday, led by AI stalwart Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Alphabet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)
Also weighing down on sentiment would be apprehensions regarding two key data due for the week. The first read of the first-quarter GDP data (Thursday) and the personal income and spending report (Friday), will be in the spotlight as the market strives to make sense of growth and inflation trajectories ahead of next week&#8217;s Federal Reserve&#8217;s monetary policy meeting.
 Futures Performance On Thursday ( as of 5:50 a.m. EDT)
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>-0.81%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>-0.48%</td>
</tr>
<tr>
<td>Dow</td>
<td>-0.31%</td>
</tr>
<tr>
<td>R2K</td>
<td>-0.47%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> In <a href="https://www.benzinga.com/premarket/" target="_blank" rel="noreferrer noopener">premarket</a>&nbsp;trading on Thursday, the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) slipped 0.43% to $503.24,&nbsp;and the&nbsp;Invesco QQQ ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 0.78% to $423.20, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Past Session:
Early optimism triggered by positive reactions to earnings from Tesla, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Texas Instruments, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>) tempered over the course of Wednesday&#8217;s session. Mixed earnings reports and economic worries kept sentiment subdued for much of the session, and this led to a mixed close for the day.
The tech-heavy Nasdaq Composite and the S&amp;P 500 Index ended the session marginally higher, pulling notably off the day&#8217;s high reached in early trading. The former moved in a roughly 205-point range and the latter gyrated between 5,047.02 and 5,089.48, a roughly 43-point intra-day move. Nevertheless, the indices have been higher for a third straight session now.
Weighed down by a 2.87% pullback in Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) shares following its earnings release, the Dow Jones Industrial Average ended modestly lower. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/-)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+0.10%</td>
<td>15,712.75</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+0.02%</td>
<td>5,071.63</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-0.11%</td>
<td>38,460.92</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-0.36%</td>
<td>1,995.43</td>
</tr>
</tbody>
</table>
</figure>
Insights From Analysts:
The growth conundrum of whether the economy is going to see a hard or soft landing, has kept investors skewed toward quality stocks, <a href="https://www.morganstanley.com/ideas/thoughts-on-the-market-wilson?subscribed=true&amp;dis=em_2024424_wm_5ideasarticle&amp;et_mid=585156&amp;et_mkid=&amp;sfmc_id=201810710">said </a>Morgan Stanley&#8217;s Chief Equity Strategist Mike Wilson in a podcast. &#8220;The largest risk for stocks more broadly is higher 10-year Treasury yields as investors begin to demand a larger term premium due to higher inflation and the growing supply of bonds to pay for the endless deficits,&#8221; he said.
&#8220;Our primary concern for equities at this point is that aggressive fiscal spending has led to better economic growth but it keeps upward pressure on inflation and prevents the Fed from cutting interest rates that many economic participants desperately need at this point.&#8221;
The analyst recommended investors look into under-appreciated sectors. &#8220;This is all in-line with our 2024 outlook that suggests the major equity indices are overvalued while the best opportunities are likely beneath the surface in underappreciated sectors like energy that are positively levered to stickier inflation and higher interest rates.&#8221;
Fund Strat&#8217;s Tom Lee, however, is optimistic. In his weekly commentary, the analyst noted that the S&amp;P 500 and equities rebounded over the past two days, rising more than 2%. &#8220;The S&amp;P 500 closed solidly above the critical 5,019.20 to 5,070.55. In our view, this is confirmation that the worst of this two-week decline is behind us,&#8221; he said.
Upcoming Economic Data:
The Bureau of Economic Analysis is due to release its<a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/04/38405106/us-economy-expected-to-grow-2-5-in-q1-not-a-hard-landing-and-hardly-a-soft-one"> first-quarter GDP data (advance estimate) </a>at 8:30 a.m. EDT. Economists, on average, expect the economy to have expanded 2.2%, slower than the 3.4% pace in the fourth quarter. Traders may also keep an eye on the GDP price deflator and the price consumption expenditure index to gauge inflation trends.
The Labor Department will release the customary jobless claims data at 8:30 a.m. EDT. The number of individuals claiming unemployment benefits is expected at 215,000 for the week ended April 20, up slightly from 212,000 in the previous week.
The National Association of Realtors is scheduled to release its pending home sales index for March at 10 a.m. EDT, with consensus calling for an unchanged reading following the 1.6% increase in February.
The Treasury will auction four- and eight-week bills at 11:30 a.m. EDT and seven-year notes at 1 p.m. EDT.
See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How To Trade Futures </a>
Stocks In Focus: 
<ul>
<li>Meta and IBM fell 12.5% and 8.5%, respectively, <a href="https://www.benzinga.com/premarket">in premarket trading </a>following quarterly earnings announcement.</li>
<li>Other stocks moving on earnings are ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) (down about 4.5%), Teradyne, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>) (up over 8%), O&#8217;Reilly Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORLY#NASDAQ">ORLY</a>) (down 4%), Meritage Homes Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>) (up over 12.5%), Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) (up about 2.5%) and Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>) (up about 2.5%).</li>
<li>Altria Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MO#NYSE">MO</a>), American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>), AstraZeneca Plc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AZN#NASDAQ">AZN</a>), Bristol-Myers Squibb Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMY#NYSE">BMY</a>), Caterpillar, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), CMS Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMS#NYSE">CMS</a>), Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>), Dow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DOW#NYSE">DOW</a>), Harley-Davidson, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HOG#NYSE">HOG</a>), Hertz Global Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>), Honeywell International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HON#NASDAQ">HON</a>), Merck &amp; Co., Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRK#NYSE">MRK</a>), Mobileye Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>), Nasdaq, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NDAQ#NASDAQ">NDAQ</a>), Newmont Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NEM#NYSE">NEM</a>), Royal Caribbean Cruises Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RCL#NYSE">RCL</a>), Sanofi (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNY#NASDAQ">SNY</a>), Southwest Airlines Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) and STMicroelectronics N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STM#NYSE">STM</a>) are among the <a href="https://www.benzinga.com/calendars/earnings">companies reporting their earnings ahead of the market open.</a></li>
<li>Notable names reporting after the close include Alphabet, Boyd Gaming Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BYD#NYSE">BYD</a>), Capital One Financial Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), Gilead Sciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GILD#NASDAQ">GILD</a>), Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Juniper Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>), KLA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>), Microsoft, Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>), Teladoc Health, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDOC#NYSE">TDOC</a>), T-Mobile US, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>) and Western Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDC#NASDAQ">WDC</a>).</li>
</ul>
Commodities, Bonds, and Global Equity Markets:
Crude oil futures continued to trade under the $83-a-barrel mark and gold futures were seen consolidating just above the $2,330 level.
The 10-year note yield, held firm around the 4.64% ahead of Friday&#8217;s inflation data.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) weakened by about 3.50% and traded shy of the psychological barrier of $64,000.
Most major Asian markets, with the exception of the Chinese, Hong Kong and Indian markets, pulled back, as traders positioned themselves for Friday&#8217;s U.S. inflation data. The Australian and New Zealand markets remained closed for a public holiday.
The European markets fell in early trading, adding to the losses they made on Wednesday. The Euro STOXX 50 Index was down 0.44% at the last check.
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38410454/treasury-yields-reach-5-month-high-lift-mortgage-rates-expert-warns-federal-debt-">Treasury Yields Reach 5-Month High, Lift Mortgage Rates; Expert Warns &#8216;Federal Debt Blob Is Out Of Control&#8217;</a>
Image via Shutterstock

Futures

Economics

Federal Reserve

GOOG

MBLY

NDAQ

ORLY

TSLA

US Stocks Brace For Negative Start Amid Tech Earnings Disappointments, Caution Ahead Of Data: 'Worst Of This Two-Week Decline Is Behind Us,' Says Analyst

WIIM

ServiceNow shares are trading lower after the company reported Q1 financial results.

IBM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) CEO Arvind Krishna has forecasted a significant shift in the use of AI by enterprises, noting that the technology will drive tangible business results. This comes as the company&#8217;s AI bookings surpass the $1 billion mark.
What Happened: Krishna, during the Q1 2024 Earnings Call, highlighted the increasing importance of technology in the global economy, particularly in driving productivity and enhancing customer experience.
The CEO also emphasized the growing traction of enterprise AI, with more clients expected to transition from experimenting to deploying AI at scale for productivity gains. IBM&#8217;s AI offerings have seen consistent growth, with a book of business exceeding $1 billion, primarily driven by consulting services.
Krishna emphasized key partnerships driving AI and hybrid cloud growth, including collaborations with NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and ServiceNow Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) to enhance AI capabilities and digital transformation. The Adobe partnership expanded to include OpenShift and watsonx in the Adobe Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADBE#NASDAQ">ADBE</a>) Experience platform.
&#8220;This quarter, we&#8217;ve progressed strategic partnerships with a number of industry leaders, consulting joint forces with NVIDIA to accelerate clients&#8217; AI journeys,&#8221; Krishna said. 
IBM&#8217;s comprehensive AI strategy, centered around the watsonx platform, is designed to help clients scale AI. The platform enables clients to build their AI solutions, incorporating both IBM and third-party models. The company&#8217;s infrastructure segment is also playing a crucial role as clients utilize their hardware investments in their AI strategies.
See Also: <a href="https://www.benzinga.com/news/24/04/38339431/general-motors-and-ford-are-facing-the-same-challenge-as-they-run-back-to-gas-powered-trucks?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">General Motors And Ford Are Facing The Same Challenge As They Run Back To Gas-Powered Trucks</a>
IBM&#8217;s full-stack approach, from on-chip AI processing to AI accelerator cards, is designed to facilitate model building and training on any platform, with easy deployment on IBM Z. The Telum chip, a unique feature, enables real-time AI inferencing.
IBM is also committed to an open innovation ecosystem around AI, with recent collaborations with the Spanish government and other industry leaders. The company continues to invest in emerging technologies, such as quantum computing, and is focused on portfolio optimization.
Why It Matters: IBM&#8217;s Q1 2024 earnings call comes on the heels of a <a href="https://www.benzinga.com/news/earnings/24/04/38416255/ibm-q1-earnings-revenue-miss-eps-beat-hashicorp-acquisition-ai-strategy-strength-and-more">revenue miss</a> but an EPS beat, as the company reported a 1% YoY increase in revenue to $14.46 billion. The company&#8217;s AI strategy and strength are seen as crucial factors amid this financial performance.
IBM&#8217;s focus on AI is not new. The company has been actively involved in the AI space, from advocating for open AI models to <a href="https://www.benzinga.com/news/23/12/36085130/meta-ibm-and-over-50-ai-companies-join-forces-in-open-ai-advocacy-initiative">joining forces</a> with over 50 AI companies and research institutions in an open AI advocacy initiative. This commitment to AI is now reflected in the company&#8217;s Q1 performance and its future outlook.
IBM Price Action: <a href="https://www.benzinga.com/quote/IBM" target="_blank" rel="noreferrer noopener">IBM shares</a> were down 8.47% after hours at $168.51 at the time of publication, according to <a href="https://benzinga.grsm.io/gxjhpowx7zks" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/04/38416273/meta-platforms-q1-earnings-highlights-facebook-owner-beats-estimates-but-guidance-higher-costs-ding?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Meta Platforms Q1 Earnings Highlights: Facebook Owner Beats Estimates, But Guidance, Higher Costs Ding Stock</a>
Image Courtesy: World Economic Forum/Manuel Lopez
This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.<a href="https://benzinga.com/apis" target="_blank" rel="noreferrer noopener"></a>

ADBE

NVDA

IBM CEO Arvind Krishna Teams Up With Nvidia 'To Accelerate Clients' AI Journeys' Amid $1B In Bookings

ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) reported its first-quarter financial results after the bell Wednesday. Here's a <a href="https://www.benzinga.com/pressreleases/24/04/b38415464/servicenow-reports-first-quarter-2024-financial-results">look at the highlights</a>.
The Details:
ServiceNow reported quarterly earnings of $3.41 per share which beat the analyst consensus estimate of $3.14 by 8.6%. 
Quarterly sales came in at $2.6 billion which beat the analyst consensus estimate of $2.59 billion and represents a 24.19% increase over sales of $2.1 billion from the same period last year.
The company reported subscription revenues of $2.523 billion in the first quarter, representing 25% year-over-year growth, 24.5% in constant currency. ServiceNow highlighted recording eight transactions over $5 million in net new ACV in the first quarter, up 100% year-over-year. 
&#8220;ServiceNow is off to a fast start with an outstanding first quarter,&#8221; said ServiceNow CEO Bill McDermott. &#8220;As leaders seek significant productivity improvements, ServiceNow has first mover advantage with years of investment in AI technology and talent. Our GenAI offerings are the fastest selling in the company&#8217;s history. We are humbled by the trust our customers are investing in our platform. As we engineer Now Assist AI into every business workflow across every enterprise, we are giving people the power to know more, care more, and do more.&#8221;
Outlook:&nbsp;
ServiceNow sees second-quarter adjusted subscription revenue growth of 22%. 
The company initiated a program to hedge a portion of its forecasted foreign currency denominated revenues. While the cash flow hedging program is designed to reduce the impact of foreign currency exchange rate fluctuations on its subscription revenues, the strengthening of the U.S. Dollar since December 31, 2023 has still resulted in an adverse impact to its 2024 guidance. 
The company expects negative 2-point impact to its second-quarter cRPO growth, as the balance of its U.S. Federal business contracts containing 12-month renewal terms amortized into revenue.
Related News: <a href="https://www.benzinga.com/news/24/04/38407505/whats-going-on-with-advanced-micro-devices-stock">What&#8217;s Going On With Advanced Micro Devices Stock?</a>
NOW Price Action: According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>, ServiceNow shares are down 4.91% after-hours at $709.75 at the time of publication Tuesday.
Image: Shutterstock

ServiceNow Reports Q1 Results and Q2 Guidance, Shares Fall

<h3>Gainers</h3>
<ul>
<li>ReAlpha Tech Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIRE#NASDAQ">AIRE</a>) shares rose 13.8% to $1.32 during Wednesday's after-market session. The company's market cap stands at $58.2 million. The company's, Q1 earnings came out 3 days ago. </li>
<li>Hitek Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HKIT#NASDAQ">HKIT</a>) shares moved upwards by 13.33% to $1.53. The company's market cap stands at $22.0 million. </li>
<li>Alpha Technology Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATGL#NASDAQ">ATGL</a>) shares increased by 8.74% to $2.86. The company's market cap stands at $43.6 million. </li>
<li>Impinj (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PI#NASDAQ">PI</a>) stock increased by 7.64% to $130.0. The company's market cap stands at $3.5 billion. As per the news, the Q1 earnings report came out today. </li>
<li>Prairie Operating (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PROP#NASDAQ">PROP</a>) stock moved upwards by 6.21% to $15.22. The market value of their outstanding shares is at $152.6 million. </li>
<li>AEye (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LIDR#NASDAQ">LIDR</a>) shares rose 5.45% to $1.05. The market value of their outstanding shares is at $6.8 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>TROOPS (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TROO#NASDAQ">TROO</a>) shares decreased by 7.8% to $1.3 during Wednesday's after-market session. The company's market cap stands at $132.0 million. </li>
<li>IBM (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>) shares fell 6.11% to $172.86. The company's market cap stands at $158.4 billion. The company's, Q1 earnings came out today. </li>
<li>Sobr Safe (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOBR#NASDAQ">SOBR</a>) stock decreased by 5.65% to $0.29. The market value of their outstanding shares is at $5.8 million. </li>
<li>ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) shares decreased by 5.54% to $705.0. The market value of their outstanding shares is at $144.7 billion. The company's, Q1 earnings came out today. </li>
<li>Ostin Technology Group (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OST#NASDAQ">OST</a>) stock decreased by 5.53% to $0.43. The market value of their outstanding shares is at $7.2 million. </li>
<li>Spectaire Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPEC#NASDAQ">SPEC</a>) shares fell 5.0% to $0.54. The market value of their outstanding shares is at $9.1 million. 
See Also: <a href="http://www.benzinga.com/money/tech-stocks/" title="www.benzinga.com/money/tech-stocks/">www.benzinga.com/money/tech-stocks/</a></li>
</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

ATGL

HKIT

LIDR

PROP

SOBR

SPEC

TROO

12 Information Technology Stocks Moving In Wednesday's After-Market Session

Guidance

ServiceNow Sees Q2 2024 Adj. Subscription Revenue Growth 22%

ServiceNow (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>) reported quarterly earnings of $3.41 per share which beat the analyst consensus estimate of $3.14 by 8.6 percent. The company reported quarterly sales of $2.60 billion which beat the analyst consensus estimate of $2.59 billion by 0.69 percent. This is a 24.19 percent increase over sales of $2.10 billion the same period last year.

Earnings Beats

ServiceNow Q1 2024 Adj EPS $3.41 Beats $3.14 Estimate, Sales $2.60B Beat $2.59B Estimate

Rising Treasury yields have investors cautious despite positive news <a href="https://www.benzinga.com/calendars/earnings">from the earnings season.</a>
The yield on the long-dated 30-year Treasury bond has surged to 4.79%. It&#8217;s on track to close at the highest level since early November, ahead of crucial economic data on Thursday.
The iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) fell 0.9%, extending its year-to-date drop to 10%. 
Rising yields are propelling the greenback higher, particularly against the low-yielding Japanese yen which tumbled to past 155 per dollar, hitting the lowest level since June 1990.
Tesla Inc. posted lower-than-expected results last quarter, but shares rose 10%. Investors reacted to the automaker&#8217;s pledge to produce more affordable models to broaden the market.
The S&amp;P 500 fell 0.4% by midday trading in New York; the tech-heavy Nasdaq 100 managed to hold steady; and small caps saw wider declines, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) down 1%. 
Gold remains unchanged, while oil prices edged up by 0.5%, despite the Energy Information Administration revealing a 6.368 million barrel drop in crude oil inventories last week, significantly below market expectations of a 1.6 million barrel increase.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 2.7% to $64,500 amid waning sentiment towards riskier assets. 
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>17,470.46</td>
<td>0.0%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,334.54</td>
<td>-0.4%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,048.09</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>1,983.56</td>
<td>-1.0%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:35 p.m. EDT</figcaption></figure>
The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.5% to $503.45, the&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fell 0.4% to $383.43 and the tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched 0.1% lower to $424.43, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;
Sector-wise, the Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) outperformed, up 0.3%. The Industrials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) was the major laggard, down 1.5%. 
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Texas Instruments Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TXN#NASDAQ">TXN</a>) rose 6.5%, after beating both earnings and revenue estimates last quarter. </li>
<li>Other companies reacting to earnings were Steel Dynamics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>) (down 2.5%), Mattel, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAT#NASDAQ">MAT</a>) (up 3.6%), Baker Hughes Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>) (down nearly 2%), Chubb Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>), (down over 3%), Old Dominion Freight Line, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ODFL#NASDAQ">ODFL</a>) (down over 10%), Norfolk Southern Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NSC#NYSE">NSC</a>) (down 5%), Boston Scientific Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BSX#NYSE">BSX</a>) (up over 6%), AT&amp;T Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) (up 1.8%), Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) (down 1.6%), CME Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CME#NASDAQ">CME</a>) (down 1.4%), General Dynamics Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GD#NYSE">GD</a>) (down 3.2%) and Hilton Worldwide Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLT#NYSE">HLT</a>) (up 4.3%). </li>
<li>Notable names reporting after the close are Whirlpool Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WHR#NYSE">WHR</a>), Western Union Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WU#NYSE">WU</a>), ServiceNow, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), QuantumScape Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QS#NYSE">QS</a>), O&#8217;Reilly Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORLY#NASDAQ">ORLY</a>), Meta Platforms, Meritage Homes Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTH#NYSE">MTH</a>), Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), Knight-Swift Transportation Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KNX#NYSE">KNX</a>), International Business Machines Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBM#NYSE">IBM</a>), Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and Chipotle Mexican Grill, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>).</li>
</ul>
Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38410454/treasury-yields-reach-5-month-high-lift-mortgage-rates-expert-warns-federal-debt-">Treasury Yields Reach 5-Month High, Lift Mortgage Rates; Expert Warns &#8216;Federal Debt Blob Is Out Of Control&#8217;</a>

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Microsoft (NASDAQ:<a href="https://investorplace.com/stock-quotes/msft-stock-quote/">MSFT</a>) fell hard before it announced earnings on April 25, finishing the trading day below $400 per share. But thanks to blowout earnings that beat estimates things are looking up. Analysts were expecting earnings of $2.82 a share, up just 15% from a year ago, with <a href="https://www.thestreet.com/investing/stocks/analysts-reset-microsoft-stock-price-targets-ahead-of-highly-anticipated-earnings">revenue of $60.8 billion</a>, but Microsoft stock surprised. 



Instead, net income came in at $21.9 billion, $2.94 per share, and revenue was <a href="https://www.microsoft.com/en-us/investor/earnings/fy-2024-q3/press-release-webcast">$61.9 billion</a>. The 32% year-over-year growth of Azure cloud beat the division&rsquo;s 21% average of the last three years.It was the harbinger of a new era.



<h2>The Power of AI and Microsoft Stock</h2>



Microsoft stock seemed primed for a fall because, this quarter, other cloud-related stocks fell. Nvidia (NASDAQ:<a href="https://investorplace.com/stock-quotes/nvda-stock-quote/">NVDA</a>) suffered a post-earnings hangover last month, shares 13% off their all-time high despite blowout earnings. &nbsp;Netflix (NASDAQ:<a href="https://investorplace.com/stock-quotes/nflx-stock-quote/">NFLX</a>) saw the same thing. Neither has fully recovered.



Even Meta Platforms (NASDAQ:<a href="https://investorplace.com/stock-quotes/meta-stock-quote/">META</a>) fell 11% after beating estimates. Analysts worried about its capital spending.



It turned out Microsoft investors had nothing to worry about. AI is changing Microsoft more than the cloud itself did, CEO Satya Nadella said on <a href="https://www.fool.com/earnings/call-transcripts/2024/01/31/microsoft-msft-q2-2024-earnings-call-transcript/">its conference call</a>. 



Versions of Microsoft&rsquo;s AI, like Sales Copilot, Service Copilot, GitHub Copilot and Security Copilot,&nbsp;will drive more revenue from each Microsoft user, he said. They&rsquo;ll get it all back, and more, in productivity.



Thanks to its AI tools, the Azure cloud is taking market share from Amazon.com&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/">AMZN</a>) Amazon Web Services. Microsoft Copilot is drawing millions of subscribers <a href="https://www.techrepublic.com/article/microsoft-copilot-cheat-sheet/">at $30/month</a>, the first large language model to rack up financial success.



CFO Amy Hood said the good times should keep rolling. Through the fiscal year ending in June Azure will grow at 18-19%, she said. Copilot will help grow the Microsoft 365 business by 15%. 



Activision will grow the gaming division by 40-50%, with gross margins at 50% of revenue. Once Activision is fully integrated into Microsoft it will be adding to earnings.



Microsoft has also gotten into the small model market with <a href="https://www.nytimes.com/2024/04/23/technology/microsoft-ai.html">Phi</a>, using <a href="https://www.theverge.com/2024/4/23/24137534/microsoft-phi-3-launch-small-ai-language-model">smaller data sets</a> for training.&nbsp;The smallest such model can fit on a smartphone. It&rsquo;s an AI that doesn&rsquo;t need the internet.



This is resulting in fat contracts. Coca-Cola (NYSE:<a href="https://investorplace.com/stock-quotes/ko-stock-quote/">KO</a>) is putting $1.1 billion into Microsoft Azure and its AI <a href="https://news.microsoft.com/2024/04/23/the-coca-cola-company-and-microsoft-announce-five-year-strategic-partnership-to-accelerate-cloud-and-generative-ai-initiatives/">over the next five years</a>. &nbsp;Moderna (NASDAQ:<a href="https://investorplace.com/stock-quotes/mrna-stock-quote/">MRNA</a>) is hoping <a href="https://www.forbes.com/sites/randybean/2024/03/25/how-moderna-is-embracing-data--ai-to-transform-drug-discovery/?sh=4105451cfed6">find new drug targets faster </a>with Microsoft&rsquo;s AI. Gaming revenue was also up 61%, following the Activision purchase.



<h2>Why We Worried</h2>



Before earnings the failures at Nvidia and Meta indicated an artificial intelligence <a href="https://www.danablankenhorn.com/2024/04/the-ai-hangover.html">hangover </a>was taking shape. ServiceNow (NASDAQ:<a href="https://investorplace.com/stock-quotes/now-stock-quote/">NOW</a>) <a href="https://www.zacks.com/stock/news/2262603/servicenow-now-q1-earnings-beat-estimates-revenues-up-yy">fell 5%</a> despite handily beating estimates.



Azure is part of an AI arms race that saw it spending <a href="https://www.microsoft.com/en-us/Investor/earnings/trended/capital-expenditure.aspx">$22.7 billion</a> in just the first half its fiscal year. The capital spending looks to be accelerating.



Analysts also worried about <a href="https://www.investors.com/news/economy/federal-reserve-inflation-rate-core-pce-gdp-q1-sp-500/">inflation</a>, <a href="https://www.cnbc.com/2024/04/24/mortgage-demand-drops-as-interest-rates-soar-over-7percent.html">interest rates</a>, and economic growth <a href="https://apnews.com/article/economy-growth-inflation-gdp-consumers-federal-reserve-5a64d255a09313dabe54954060a09530">falling. </a>



Microsoft&rsquo;s valuation was also at issue. Its price to earnings ratio is 36. Its once-generous 75 cent dividend now yields just .73%. Most of its operating cash flow, which came to over $100 billion last year, went out the door as capital spending. The purchase of Activision-Blizzard left almost $57 billion in debt.



<h2>The Government Risk</h2>



The biggest risk to Microsoft now comes from the government, which has kicked the company hard before.



Microsoft lost 15 years to the <a href="https://en.wikipedia.org/wiki/United_States_v._Microsoft_Corp">U.S. vs. Microsoft </a>antitrust case. That case hobbled Microsoft with lawyers and timid product managers until Nadella committed it to the cloud a decade ago.



The company is <a href="https://www.cnbc.com/2024/04/01/microsoft-separates-teams-and-office-globally-amid-antitrust-scrutiny.html">unbundling</a> some of its products to address concerns. But that won&rsquo;t be enough. Fears of Microsoft&rsquo;s power have returned to Washington. A.J. Grotto, formerly <a href="https://fsi.stanford.edu/people/andrew-j-grotto">Senior Director for Cybersecurity Policy&nbsp;</a>under Obama and Trump, even called the company &ldquo;<a href="https://www.theregister.com/2024/04/21/microsoft_national_security_risk/">a national security threat.&rdquo; </a>



<h2>The Bottom Line</h2>



I have been telling investors to buy stocks in the Cloud Czars for a decade now. Critics ask, why are they worth the premium? Why should a company like Microsoft, with a minimal dividend, be worth 36 times earnings?



The answer should now be clear to everyone. AI is the reason. It&rsquo;s time to stop talking about Cloud Czars. Microsoft is the God Emperor of AI.



As of this writing, Dana Blankenhorn had a LONG position in MSFT, NVDA, GOOGL, AMZN, MRNA and NOW. &nbsp;The opinions expressed in this article are those of the writer, subject to the&nbsp;InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div><a href="http://www.danablankenhorn.com/">Dana Blankenhorn</a> has been a financial and technology journalist since 1978. He is the author of <a href="https://www.amazon.com/Technologys-Big-Bang-Yesterday-Tomorrow-ebook/dp/B0829C7XSF">Technology&rsquo;s Big Bang: Yesterday, Today and Tomorrow with Moore&rsquo;s Law</a>, available at the Amazon Kindle store. Tweet him at <a href="http://www.twitter.com/danablankenhorn">@danablankenhorn</a>, connect with him on <a href="https://journa.host/@DanaBlankenhorn"> Mastodon</a> or subscribe to his <a href="https://danafblankenhorn.substack.com/">Substack</a>.</div><h3>More From InvestorPlace</h3>
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	The post <a href="https://investorplace.com/2024/04/all-in-on-microsoft-stock-how-ai-turned-msft-into-the-hottest-tech-play-of-2024/">All In on Microsoft Stock: How AI Turned MSFT Into the Hottest Tech Play of 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

All In on Microsoft Stock: How AI Turned MSFT Into the Hottest Tech Play of 2024

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<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
Just like how &ldquo;buy&rdquo; ratings from Wall Street analysts can give you great ideas to add to your watchlist, &ldquo;sell&rdquo; ratings from these analysts can also steer you away from the stocks to avoid.



That said, much like how not every stock rated &ldquo;buy&rdquo; ends up being a profitable investment, not every stock rated &ldquo;sell&rdquo; ends up in the stock market graveyard. Sure, given <a href="https://www.cnbc.com/2017/01/26/sell-ratings-by-wall-street-analysts-almost-never-happen.html">sell-side analysts assign stocks rarely assign &ldquo;sell&rdquo; ratings</a>. With this, you may be thinking &ldquo;if analysts are rating this stock a sell, things must be pretty bad.&rdquo;



However, sometimes analysts only rate a stock a &ldquo;sell&rdquo; just as the market is finishing up absorbing negative developments. Sometimes analysts overestimate the importance of valuation. Similar to individual investors, they overestimate the importance of both good and bad news about a particular stock.



So, what &ldquo;sell&rdquo;-rated stocks are truly stocks to avoid, and which are unfairly low-rated? Let&rsquo;s take a look at seven stocks that have received either a downgrade or a bearish analyst rating since the start of the year, and find out.



<h2>Nordstrom (JWN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/nordstrom_jwn_stock_jwn1600-300x169.jpg" alt="A Nordstrom (JWN) storefront in Toronto, Canada."><div>Source: Jonathan Weiss / Shutterstock.com</div></div>Back in March, Jeffries&rsquo; Ashley Helgans downgraded Nordstrom (NYSE:<a href="https://investorplace.com/stock-quotes/jwn-stock-quote/">JWN</a>) shares <a href="https://seekingalpha.com/news/4077229-nordstrom-is-downgraded-by-jefferies-with-margin-recovery-seen-taking-time-to-play-out">from &ldquo;buy&rdquo; from &ldquo;hold,&rdquo;</a> with a price target of $17 per share. In her downgrade, the analyst cited the prospect of a longer-than-expected recovery of the department store chain&rsquo;s margins. Given this timeline, Helgans believes shares are fairly priced.



JWN stock has not received any other sell-side downgrades lately, but it hasn&rsquo;t received much in the way of bullish coverage, either. Over the past year, <a href="https://finviz.com/quote.ashx?t=JWN&amp;p=d">two other analyst firms</a> covering the stock have issued equivalent to &ldquo;hold&rdquo; ratings on shares.



That said, while the analyst community may be on the fence about Nordstrom, there may be a new catalyst emerging. The Nordstrom family is reportedly interested in taking the company private. While this takeover talk is still in the rumor stage, the company&rsquo;s board has <a href="https://www.reuters.com/markets/deals/nordstrom-forms-panel-evaluate-founder-familys-interest-take-private-deal-2024-04-18/">formed a committee to evaluate a possible take-private offer</a>.



<h2>Netflix (NFLX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/nflx1600-1-300x169.png" alt="Netflix (NFLX) logo displayed on smartphone on top of pile of money."><div>Source: izzuanroslan / Shutterstock.com</div></div>Canaccord Genuity&rsquo;s Maria Ripps downgraded Netflix (NASDAQ:<a href="https://investorplace.com/stock-quotes/nflx-stock-quote/">NFLX</a>) shares <a href="https://www.investing.com/news/stock-market-news/street-calls-of-the-week-netflix-downgrade-upgrade-for-lockheed-martin-3387666">from &ldquo;buy&rdquo; to &ldquo;hold,&rdquo;</a> following the streaming giant&rsquo;s latest quarterly earnings release. She also reduced her price target from $720 to $585 per share.



According to the analyst, there&rsquo;s little out there suggesting that revenue growth in the coming quarters will beat Netflix&rsquo;s latest guidance, which fell short of Wall Street expectations. While two other analyst firms issued bullish ratings on NFLX stock post-earnings, you may want to take heed of Ripps&rsquo; on the fence view of shares, and consider it one of the stocks to avoid.



Netflix may appear reasonably-priced compared to other mega cap <a href="https://investorplace.com/industries/technology/">tech stocks</a>, but its forward valuation of 30.7 represents a massive premium to most <a href="https://investorplace.com/industries/communications/media/">media stocks</a>. After surging nearly 75% over the past year, further upside may be limited. Moreover, some &ldquo;old media&rdquo; rivals are <a href="https://www.morningstar.com/news/marketwatch/20240208189/disney-is-making-progress-on-a-key-goal-and-is-ready-to-pull-another-lever">making progress with their own streaming ventures</a>.



<h2>ServiceNow (NOW)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/servicenow-now-1600-300x169.jpg" alt="ServiceNow office building in Silicon Valley;"><div>Source: Sundry Photography / Shutterstock.com</div></div>Two weeks back, ahead of earnings, analysts at Guggenheim downgraded ServiceNow (NYSE:<a href="https://investorplace.com/stock-quotes/now-stock-quote/">NOW</a>) <a href="https://seekingalpha.com/news/4089549-servicenow-cut-to-neutral-at-guggenheim">from &ldquo;buy&rdquo; to the equivalent of &ldquo;hold.&rdquo;</a> The sell-side firm did not assign a price target for the enterprise software firm&rsquo;s shares.



A key reason behind the downgrade was valuation. Guggenheim believes that shares has limited upside, given NOW&rsquo;s current valuation relative to near-term prospects. Much like the aforementioned NFLX stock downgrade, other analysts have been more bearish than bullish on NOW stock.



However, despite the post-earnings bullishness from the analyst community, a look at the latest numbers and outlook arguably gives more credence to Guggenheim&rsquo;s less-than-bullish view. <a href="https://www.bloomberg.com/news/articles/2024-04-24/servicenow-projects-sales-growth-that-falls-short-of-estimates">Last quarter&rsquo;s results failed to wow the market</a>, and the updates to outlook came in short of prior expectations. As NOW continues to trade at a rich forward multiple (53.6), downside risk could be substantial. For now, staying away is possibly your best course of action.



<h2>Philip Morris (PM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/05/pm-1600-300x169.png" alt="Philip Morris factory offices in Lithuania. PM stock."><div>Source: Vytautas Kielaitis / Shutterstock</div></div>Philip Morris (NYSE:<a href="https://investorplace.com/stock-quotes/pm-stock-quote/">PM</a>) is another recent recipient of an analyst downgrade, but it may be up for debate whether it is truly one of the stocks to avoid. In March, analysts at Argus Research <a href="https://thefly.com/landingPageNews.php?id=3876336&amp;headline=PM-Argus-gets-more-bearish-on-Philip-Morris-downgrades-shares&amp;test2">downgraded</a> the tobacco company&rsquo;s shares.



Moving PM stock from &ldquo;buy&rdquo; to &ldquo;hold,&rdquo; the Argus analysts cited declining tobacco usage and regulatory risks in their downgrade. Since this downgrade, however, shares in the company, which sells Marlboro cigarettes outside the U.S., and alternative cigarette/nicotine products in the U.S., has performed well.



Most notably, following Philip Morris International&rsquo;s latest quarterly earnings release. In large part, thanks to <a href="https://www.barrons.com/articles/philip-morris-pm-earnings-stock-price-outlook-28afab89">strong growth with its non-cigarette product offerings</a>. Reasonably-priced at 15.1 times forward earnings, and a nearly 5.5% forward dividend yield to boot, you may want to skip taking heed of Argus&rsquo; mixed view of PM shares, and buy on the recent promising news.



<h2>Spirit Airlines (SAVE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/12/spirit_airlines_save1600-300x169.jpg" alt="A yellow, Spirit Airlines (SAVE) branded airplane flying in the air"><div>Source: Markus Mainka / Shutterstock.com</div></div>Given Spirit Airlines (NYSE:<a href="https://investorplace.com/stock-quotes/save-stock-quote/">SAVE</a>) crash landing when a planned merger with JetBlue (NASDAQ:<a href="https://investorplace.com/stock-quotes/jblu-stock-quote/">JBLU</a>) was <a href="https://www.justice.gov/opa/pr/justice-department-statements-district-court-decision-block-jetblues-acquisition-spirit">grounded by a court ruling</a>, I&rsquo;m doubtful many investors are interested in hopping aboard this low-cost air carrier play.



However, if you&rsquo;ve been mulling whether to go contrarian on SAVE stock, you may want to keep in mind the rationale behind Citigroup&rsquo;s downgrade of Spirit from the equivalent of &ldquo;neutral&rdquo; to &ldquo;sell,&rdquo; when a Federal court ruled that the proposed deal violated antitrust law.



Besides citing the court ruling would lead to a deal cancellation (<a href="https://ir.spirit.com/news-releases/news-details/2024/Spirit-Announces-Termination-of-Merger-Agreement-with-JetBlue/default.aspx">which it did</a>), the Citi analyst team also noted <a href="https://seekingalpha.com/news/4055972-spirit-dealt-fatal-blow-courts-decision-blocking-merger">slim chances of another bidder emerging</a>. To make matters worse, the analysts also argued that the carrier would likely continue to report negative EBITDA until 2025. As Spirit contends with high debt and negative cash flow, it&rsquo;s best to stay on standby with SAVE shares.



<h2>Upstart Holdings (UPST)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/05/upst1600-300x169.png" alt="Person holding smartphone with logo of U.S. fintech company Upstart Network Inc. (UPST) on screen in front of website. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div>In past coverage of Upstart Holdings (NASDAQ:<a href="https://investorplace.com/stock-quotes/upst-stock-quote/">UPST</a>) I&rsquo;ve called it one of the top stocks to avoid. Mostly, due to the fact that shares trade at a high multiple of forecasted 2025 results. This rich valuation <a href="https://investorplace.com/2024/03/7-sorry-financial-stocks-to-sell-in-march-while-you-still-can/">contrasts with the latest guidance for this provider of AI-powered credit underwriting analysis</a>.



I&rsquo;m of course not the only one bearish on UPST stock. The short side of this trade remains very crowded. <a href="https://fintel.io/ss/us/upst">34.1%</a> of Upstart&rsquo;s outstanding float remains sold short. Also, earlier this month, analysts at BofA issued the equivalent of a &ldquo;sell&rdquo; rating on UPST shares.



In this bearish analyst rating, BofA cited <a href="https://www.investing.com/news/company-news/bofa-resumes-upstart-stock-coverage-citing-need-to-regain-investor-confidence-93CH-3365346">multiple concerns</a>, including the sustainability of its funding model, which has increasingly entailed putting its own capital at risk. While giving UPST a $22 per share price target, taking into account the rich valuation and risks, it may safer to assume downside risk is much, much higher. 



<h2>Walgreens Boots Alliance (WBA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/01/wba1600-300x169.png" alt="Landscape Night View of Walgreen's Pharmacy Building Exterior. WBA stock"><div>Source: Mahmoud Suhail / Shutterstock.com</div></div>Shares in pharmacy chain Walgreen Boots Alliance (NASDAQ:<a href="https://investorplace.com/stock-quotes/wba-stock-quote/">WBA</a>) have been in a slump for years. Even so, with shares in this Dow Jones component trading for only 5.5 times forward earnings, and sporting a 5.65% forward dividend yield, some may be deciding to buy it as a <a href="https://www.investopedia.com/terms/d/dogsofthedow.asp">&ldquo;Dogs of the Dow&rdquo;</a> play.



The fact that WBA stock has become a <a href="https://www.wsj.com/livecoverage/stock-market-today-dow-jones-03-28-2024/card/walgreens-ceo-lays-out-details-of-turnaround-strategy-gyjISntUVhp2L3iTgCTX">turnaround play</a> may also be piquing the interest of bottom-fishing investors. Yet while WBA may seem like it&rsquo;s bottomed out, rather than being deep value, consider it better to assume Walgreens Boots Alliance remains a value trap.



Don&rsquo;t just take my word for it. Back in February, analysts at HSBC downgraded WBA <a href="https://www.investing.com/news/stock-market-news/hsbc-cuts-walgreens-stock-price-target-to-20-downgrades-to-reduce-93CH-3308718">from &ldquo;hold&rdquo; to the equivalent to &ldquo;sell,&rdquo;</a> giving shares a $17 price target. In the downgrade, the analysts cited structural challenges that may limit the extent in which turnaround efforts improve fiscal results.



On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.
<div>Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.</div><h3>More From InvestorPlace</h3>
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