$NOW reported Q1 earnings after hours and met on EPS ($0.97 vs $0.97 expected) and slightly beat on revenue ($3.77B vs $3.75B expected). Despite the beat, stock dropped significantly in after-hours trading.
This seems to be the trend this earnings season… if you're not blowing past estimates, the market treats it as a miss. Meeting expectations isn't enough when the stock is already priced for growth. Anyone else noticing this pattern across tech earnings lately?
NOW beats revenue and in line with EPS but drops 15% after earnings
byu/Exact-Advantage-3190 instocks
Posted by Exact-Advantage-3190
7 Comments
What about guidance? That means more.
5% or 15%?
Have you seen Tesla? It’s up after ER. This is just because NOW is garbage
Guess you haven’t checked out NVDA’s ER before
A moment of silence for those who thought this cannot fall further because the AI threat is overhyped. No software stock except Microsoft is safe right now, and even Microsoft is under pressure.
But did they mention AI???
Idk man. Free Cash Flow miss, margin compression. 20% Revenue Growth YoY, but no growth in Net Income over 1Y. So for me it doesn’t look too good. Yes, revenue is rising, but why would you pay higher multiples for a company that cannot grow Free Cash Flow and Net Income.