Cloud Service Providers DuringCovid 19, NYSE: NOW

Months after WHO announced an emergency due to the global pandemic, every sector has been affected. Let us see whether the pandemic has had any impact on the stock market.

The stock market almost reached a state of turmoil due to panic-trading and extreme volatility. Some stocks reported major losses too. However, ServiceNow’s stock NYSE: NOW at https://www.webull.com/quote/nyse-now remained largely unaffected. The California-based company provides cloud-based solutions for companies.

The first quarter

The first quarter saw an increase in revenue (by a good 33%). In the first quarter, shares climbed to $352. Stocks climbed up 14%. While several firms initiated mass laying off due to the losses incurred during the pandemic, the Santa-Clara based company not only retained its workforce, plans for new recruitments were made as well!

The financial results for the second quarter

At the end of the second quarter, ServiceNow represented a 30% year-over-year growth. About 40 transactions closed with over $1 million. Shares gained by 7% in this period. ServiceNow emerged to become one of the most ambitious firms that remained almost untouched by the pandemic.

The massive expansion in sales and the rise in shares was attributed to increased demand for cloud services, as many offices had to switch to work from home mode due to the global pandemic. According to estimates, almost 80% of the clients haven’t been largely affected by the situation. In the present scenario, this is quite an impressive number.

Maintaining a positive growth rate in uncertain times

The company’s services have turned out to be very relevant during the current situation. In the current year, their stockwent up by a whopping 49%. In July 2020, amidst the pandemic, ServiceNow became one of the few software growth stocks that hit all-time high trading multiples! This was when measures such as lockdown were very much in place in many parts of the world.

At this point, several giants hiked their price targets for NYSE: NOW. As remote working becomes a part of the new normal, the current trends are likely here to stay, say, analysts.

Rapid innovation and delivery according to the customers’ needs have turned out to be a winning mantra for the company. As there may be clients affected by the pandemic, uncertainties were predicted around the second and third quarters. However, the company managed to step up to the situation.

The need for digital transformation

Investors want to know if the stocks can positively grow as the pandemic continues to affect innumerable lives. Analysts say that as long as digital transformations stay necessary, one can expect good closing rates. You can check more stocks like NYSE: DS at https://www.webull.com/quote/nyse-ds before trading.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.