ServiceNow, Inc. (NYSE: NOW) ended Tuesday’s regular session higher and then traded essentially flat after the bell, as investors continued to weigh two powerful—and competing—forces: ongoing chatter about a potential mega-acquisition of cybersecurity firm Armis and the near-term mechanics of a 5-for-1 stock split that reaches its record date today.
At the close, ServiceNow shares finished at $781.12, up 2.08% on the day, after trading between roughly $765.77 and $785.71.
In after-hours trading, the stock was last indicated around $780.00, down about 0.14% from the regular-session close. [1]
Below is what matters most after the bell on Dec. 16—and what investors should have on their radar before U.S. markets open Wednesday, Dec. 17.
What happened to ServiceNow stock today
Tuesday’s move was less about new fundamentals and more about stabilization after Monday’s sharp selloff tied to acquisition speculation and a prominent analyst downgrade.
- Monday’s shock: ServiceNow shares dropped hard after reports that the company is in advanced talks to buy Armis in a deal that could be valued as high as $7 billion—a transaction that would likely be ServiceNow’s largest-ever acquisition. [2]
- Tuesday’s reset: With no official confirmation of a deal, the market shifted into “wait-and-see” mode. Barron’s described the stock as steadying after the prior day’s drop, with investors parsing potential strategic upside against integration and price-tag risk. [3]
The key takeaway: volatility remains headline-driven. Any incremental update—confirmation, denial, a leaked term detail, or a regulatory wrinkle—could dominate price action again.
The Armis acquisition rumor: why investors are split
What’s been reported
Reuters, citing a Bloomberg report, said ServiceNow is in advanced talks to buy Armis and that a deal could be announced in the coming days, though discussions could still fall apart or another bidder could emerge. [4]
Reuters also noted Armis’ recent fundraising activity: Armis raised $435 million in November, valuing the company at $6.1 billion. [5]
Why the market reacted negatively (even if the strategy makes sense)
Big acquisitions often trigger an initial selloff for the acquirer, and the pushback on ServiceNow has followed that script. Investopedia summarized the core investor concern plainly: the rumored price is large, and markets often punish the buyer first—especially when a stock has already had a weak year. [6]
From a strategic angle, Barron’s highlighted the “why it could fit” side: Armis focuses on protecting devices and could strengthen ServiceNow’s platform in areas like configuration management (CMDB), IT asset management, and security-adjacent workflow use cases. [7]
So what’s the conflict?
- Bull case: security expansion + stronger device visibility + broader platform relevance.
- Bear case: large check + integration complexity + fear this is “inorganic growth” to defend slowing momentum, not just a clean adjacency move. Guggenheim’s note (more on that below) explicitly pointed to growing investor unease around the pace and scale of acquisitions. [8]
The other major catalyst: ServiceNow’s 5-for-1 stock split is about to hit accounts
If you only remember one practical detail before Wednesday’s open, make it this:
The record date is today (Dec. 16). The distribution is expected after market close on or about Dec. 17. Split-adjusted trading is expected to begin Dec. 18. [9]
What changes—and what doesn’t
A stock split is mechanical:
- Your economic ownership doesn’t change just because there are more shares outstanding.
- The share price will mathematically adjust (roughly divided by 5) when the stock starts trading split-adjusted.
ServiceNow has told investors that shareholders of record as of Dec. 16 will receive four additional shares for each share held, with distribution after the close on or about Dec. 17, and split-adjusted trading expected to begin Dec. 18. [10]
Options traders: OCC has already outlined adjustments
The Options Clearing Corporation (OCC) memo confirms the timeline and lays out how listed options are adjusted for the 5-for-1 split, including the ex-distribution date of Dec. 18 and payable date of Dec. 17. [11]
In plain English, for standard option adjustments in this memo:
- Strikes are adjusted by the split factor (shown as a strike divisor of 5.00), and
- Contracts are adjusted by the split factor (shown as a contract multiplier of 5.00), with deliverables remaining standardized at 100 shares per contract after adjustment. [12]
Why this matters before the open: split weeks can produce confusing quotes and awkward-looking percentage moves on apps that don’t cleanly adjust historical pricing in real time. That’s not a signal—it’s plumbing.
Analyst forecasts and fresh takes published today: upgrades, target cuts, and “valuation vs. execution”
A notable feature of Tuesday’s coverage was the mixed analyst tape—less about “is ServiceNow good?” and more about “how much uncertainty are you willing to price in right now?”
Guggenheim: upgraded to Neutral, but not a “buy call”
Guggenheim upgraded ServiceNow to Neutral from Sell, framing it as a valuation-driven move after the stock’s recent decline—while still warning about structural challenges and calling out two overhangs: (1) AI monetization skepticism and (2) acquisition risk (including the reported larger security-software deal under consideration). [13]
DA Davidson: price target lowered (Buy maintained)
DA Davidson lowered its ServiceNow price target to $1,100 (from $1,250) while maintaining a Buy rating, according to a report published Tuesday. [14]
Mizuho: target trimmed, Outperform maintained
Mizuho lowered its price target to $1,050 from $1,150 and kept an Outperform rating, in a broader software-group adjustment tied to its outlook work. [15]
HSBC: “unloved software” and an AI-trade angle
MarketWatch highlighted an HSBC view that included ServiceNow among software names considered undervalued within an “AI trade” framing, assigning a valuation figure of $1,332 for the shares in that analysis. [16]
Trefis: bullish scenario analysis after the pullback
Trefis published an analysis arguing that, despite “very high” valuation metrics, ServiceNow’s operating performance could support a scenario where $996 “may not be out of reach,” while emphasizing the stock could be “attractive but volatile.” [17]
Bottom line on forecasts today: the street’s tone is not uniformly bearish—but it is clearly less forgiving about execution risk, deal risk, and proof of AI revenue impact than it was earlier in the year.
What to watch before the stock market opens tomorrow (Wednesday, Dec. 17)
1) Any headline on Armis—confirmation, denial, or terms
Reuters’ framing is the clearest: discussions could lead to an announcement in the coming days, but could also fall apart. [18]
That makes overnight/pre-market news flow particularly important.
What moves the stock most: not just “deal yes/no,” but price, structure (cash vs. stock), and the strategic narrative ServiceNow would use to justify the move.
2) Stock split mechanics: tomorrow is the distribution day (after the close)
Even though the split-adjusted trading is expected to begin Thursday (Dec. 18), tomorrow is the key operational step (distribution after the close on or about Dec. 17). [19]
If you’re watching pre-market quotes Wednesday morning, remember:
- The split has not yet started trading-adjusted (that’s expected Dec. 18). [20]
- Options adjustments are effective Dec. 18 per OCC. [21]
3) Macro and rates sensitivity: Wednesday’s calendar is busy
While ServiceNow-specific headlines are the primary driver right now, broader market conditions still matter—especially for high-multiple software.
Econoday’s calendar for Wednesday, Dec. 17 includes items such as:
- MBA Mortgage Applications (7:00 AM ET)
- Fed Governor Christopher Waller speaks (8:15 AM ET)
- Retail Sales (8:30 AM ET)
- New York Fed President John Williams speaks (9:05 AM ET)
- Business Inventories (10:00 AM ET)
among other scheduled releases/events. [22]
This comes as investors are already digesting signals of softer momentum in parts of the U.S. economy, including a Reuters report citing a slowdown in December business activity growth per S&P Global’s preliminary PMI readings. [23]
4) Watch the “software narrative” tape
Part of Monday’s pressure came from a broader fear trade around enterprise software and AI disruption. KeyBanc’s downgrade (also referenced widely in market coverage) leaned into the idea that AI could pressure the traditional SaaS model for certain vendors. [24]
If that theme re-accelerates in the sector—via commentary, peer-stock moves, or another downgrade cycle—ServiceNow may not trade purely on its own news.
A quick reality check on where NOW stands heading into Wednesday
As of Tuesday’s session:
- ServiceNow closed at $781.12.
- After-hours indications were around $780.00. [25]
- The stock is roughly 30% below its 52-week high of $1,119.94, based on today’s market data.
And the story the market is debating is straightforward:
- ServiceNow is simultaneously pushing deeper into AI (including recently closing the Moveworks acquisition) while also being linked—through media reports—to a potentially very large cybersecurity deal. [26]
- Investors want proof that acquisitions and AI positioning translate into durable growth, not just a bigger product menu.
What this setup suggests for Wednesday’s open
Between the Armis deal watch and the stock split timeline, ServiceNow stock is likely to remain headline-sensitive into Wednesday’s session. If nothing new breaks overnight, trading may hinge on:
- broader market tone after early data and Fed speakers, [27]
- and positioning/volatility around the split mechanics. [28]
References
1. finance.yahoo.com, 2. www.reuters.com, 3. www.barrons.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.investopedia.com, 7. www.barrons.com, 8. www.investing.com, 9. newsroom.servicenow.com, 10. newsroom.servicenow.com, 11. infomemo.theocc.com, 12. infomemo.theocc.com, 13. www.investing.com, 14. www.investing.com, 15. www.tipranks.com, 16. www.marketwatch.com, 17. www.trefis.com, 18. www.reuters.com, 19. newsroom.servicenow.com, 20. newsroom.servicenow.com, 21. infomemo.theocc.com, 22. us.econoday.com, 23. www.reuters.com, 24. www.barrons.com, 25. finance.yahoo.com, 26. newsroom.servicenow.com, 27. us.econoday.com, 28. newsroom.servicenow.com
