Keybanc downgraded the stock to "underweight" from "sector weight"
Shares of ServiceNow Inc (NYSE:NOW) are sharply lower this morning, after reports that the software name is in talks to acquire cybersecurity startup Armis for $7 billion as early as this week. A downgrade from Keybanc to "underweight" from "sector weight" is weighing on the shares as well, with the firm citing risks associated with AI.
ServiceNow stock was last seen down 10.3% to trade at $776.13, gapping below former support at $800 that provided a floor in late November and early December. Today's price action has also knocked the shares below several long-and short-term trendlines, and set them on track their largest single-day percentage drop since January. Amid this volatility, NOW is on today's short sell restricted (SSR) list. Since the start of 2025, the security has shed 18.4%.
Over in the options pits, ServiceNow stock has seen 6,045 calls and 7,488 puts exchanged so far today -- triple the overall volume typically seen at this point. The February 640 put is the most popular, with new positions being sold to open there.