ServiceNow stock drops as technical signals confirm strong selling pressure

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ServiceNow slides 4.53% to $105.93 today

Highlights

ServiceNow outperformed expectations in Q4 2025, driven by rapid AI integration and over $600 million in annual contract value from Now Assist.
Institutional investors raised their exposure and CEO Bill McDermott invested $3 million in stock, signaling strong top-level confidence amid a strategic NVIDIA partnership.
Despite robust fundamentals, shares face sustained downward momentum with persistent bearish technical signals and a high risk of further decline toward $103.00–$105.00.

Positive results and AI integration face selling amid investor buying

ServiceNow reported strong quarterly results, exceeding expectations in all key metrics for the fourth quarter of 2025. The company accelerated its integration of artificial intelligence across product lines, launched a new share repurchase program, and recorded over $600 million in annual contract value from its AI division, Now Assist. Notably, institutional investors increased their holdings, and CEO Bill McDermott purchased approximately $3 million in company shares in early March, accompanied by a partnership with NVIDIA to enhance AI capabilities, though price action has remained under broader selling pressure.

Persistent bearish momentum as price underperforms key technical levels

Technically, NOW trades well below its short-, medium-, and long-term moving averages — with MA-20 at $113.29, MA-50 at $116.30, and MA-200 at $164.54 — signaling continued bearish momentum. The Ichimoku Kijun resistance at $112.93 sits above the current level. Daily momentum indicators confirm this bias: MACD and ADX show sell signals, RSI is at 44.68 and trending lower, and both Stoch RSI (5.15) and BBP (–0.23) signal intraday oversold conditions that highlight persistent seller control. CCI is neutral but near oversold, and the Awesome Oscillator remains neutral. The daily session opened with a small gap lower and saw a 4.53% drop, with price testing intraday lows and showing no sign of reversal.

Further downside risk as weekly momentum signals remain negative

Short-term, NOW is expected to trade in a volatility band relative to current levels, between $103.00 and $110.00. There is a very low probability (less than 20%) of an upside move, as weekly momentum indicators remain bearish and reinforce the likelihood of further price declines. Baseline expectations are for stabilization within a sideways range near $105–$108. If price breaks above $112.93, a move toward the upper end of the range is possible; however, the favored scenario is further downside, with risk of a breach below $103.00 on accelerating bearish momentum.

Anton Kharitonov, expert at Traders Union, sees sustained downward technical pressure on ServiceNow, Inc., with the price remaining well below all key moving averages and strong resistance at $112.93. Despite positive fundamentals like robust earnings and institutional buying, bearish momentum dominates and key indicators point to further downside. The analyst expects a sideways range near $105–$108 but highlights a higher risk of a drop below $103.00. "Until ServiceNow breaks above $112.93, I remain defensive — further declines remain the base case."

Earlier, analysts noted that despite ongoing expansion in ServiceNow’s enterprise and AI initiatives, the stock remained under persistent technical pressure across multiple timeframes. The latest developments reinforce this bearish outlook, and with volatility intensifying, downside risk below the current range requires close attention from traders seeking inflection points.

Source of Data: NOW Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.