Key Updates on Netflix and ServiceNow Stock Performance
Netflix (NASDAQ: NFLX) recently completed a 10-for-1 stock split in November and is currently trading 43% below its record high. Meanwhile, ServiceNow (NYSE: NOW) conducted a 5-for-1 stock split in December and is down 56% from its peak. Both companies are perceived by Wall Street analysts as undervalued, with Netflix’s target price suggesting a potential upside of 95% and ServiceNow’s indicating a 103% upside.
Netflix’s ongoing acquisition bid for Warner Bros. Discovery’s streaming and studio assets amounts to approximately $83 billion, raising concerns over increased debt affecting cash flow. Analysts project Netflix’s earnings to grow 22% annually over the next three years. In contrast, ServiceNow reported a 20% revenue increase to $3.5 billion for its fourth quarter, with a forecasted adjusted earnings growth of 19% in 2026.
As of now, Netflix shares are priced at around $77, and ServiceNow shares at $103, with median target prices of $111 and $180, respectively. With more than 85% of Fortune 500 companies utilizing ServiceNow, its sustainability amid AI advancements is favored by industry experts.
