NOW is still down 51% in 2026 but is testing a key trendline today
ServiceNow (NYSE:NOW) stock is surging today, last seen up 7% to trade at $101.75, after BofA Global Research initiated coverage with a “buy” rating and a $130 price target, a roughly 37% upside from Friday’s close. The firm highlighted ServiceNow’s deeply embedded role in enterprise workflows as a major strength and notes the company will benefit from AI, not be replaced.
If these gains hold, NOW will lock in its third straight win. NOW is trying to rebound an April 23 post-earnings selloff of 17.7% that tested the $80 region. Today's rally has the shares facing pressure at their 60-day moving average. Even with today’s pop, the stock still sports a steep 51% year-over-year deficit.
Short sellers have been piling in lately, which could create fuel for a larger rally. Short interest jumped 64.7% over the last month and now accounts for 4.78% of the stock’s available float.
Calls are predominant in the options pits. NOW's 10-day call/put volume ratio of 7.90 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 100th percentile of its annual range. Given the spike in short interest, some of this call buying could be shorts seeking an options hedge.