ServiceNow Stock Rebounds After Analysts Give Thumbs Up To $2.85B Moveworks Deal: Retail’s Excited

Morgan Stanley’s Keith Weiss said the proposed Moveworks buy expands ServiceNow’s agentic offerings and assists with expansion into areas such as customer relationship management and enterprise/agentic search.

ServiceNow, Inc. (NOW) shares rose sharply after analysts cheered the company’s agreement to acquire Mountain View, California-based agentic artificial intelligence (AI) assistant provider Moveworks for $2.85 billion in cash and stock. 

ServiceNow stock shed nearly 8% on Monday following the announcement, with part of the weakness attributable to the sell-off in the broader market. 

ServiceNow is an end-to-end intelligent workflow automation platform solutions provider based in Santa Clara, California. 

Commenting on the deal, Morgan Stanley analyst Keith Weiss said the acquisition further bolsters ServiceNow’s agentic offerings and assists with the company’s expansion into areas such as customer relationship management and enterprise/agentic search.

The analyst said the Moveworks deal is in addition to ServiceNow’s acquisitions of AI-based technological solutions, including Cuein and Quality 360.

Weiss also noted that ServiceNow provided further commentary regarding its Pro Plus solution, stating that its annual contract value (ACV) surpassed $200 million as of Dec. 31, 2024

Morgan Stanley maintained an ‘Equal-Weight’ rating and $960 price target for ServiceNow stock.

Several other sell-side firms also expressed optimism regarding the deal, TheFly reported.

BofA analysts called the deal an “acqui-hire,” adding 500 AI experts to ServiceNow. They see Moveworks as a nice fit with ServiceNow’s evolving AI offering. 

RBC Capital Markets analysts said the deal should be seen as accelerating ServiceNow’s agentic roadmap. They added that it is complementary and does not negatively reflect ServiceNow’s current agentic capabilities.

On Stocktwits, retail sentiment toward ServiceNow stock stayed ‘bullish’ (61/100), and the message volume perked to ‘high’ levels.

A bullish watcher said they started a position in the stock following the deal announcement

https://stocktwits.com/PsychoPass/message/607451217

ServiceNow stock has bounced back and last traded up over 4.50% at $819.32 Tuesday afternoon.

The stock has lost about 26% year-to-date. 

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