NOW – Market expectations are for Uniform ROA to improve to all-time highs, but management may be concerned about the NOW platform, growth, and their capabilities

• ServiceNow, Inc. (NOW:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with an 82.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about the NOW platform, growth opportunities, and their capabilities
  
  

• Specifically, management may be exaggerating their ability to scale ServiceNow, get to the root causes of client problems, and execute their go-to-market strategy. In addition, they may lack confidence in their ability to build applications and re-platform companies to the NOW platform on tight timelines. Furthermore, they may be overstating the potential of digital transformation opportunities and their ability to provide IT services to clients. Moreover, they may have concerns about the progress of the NOW platform’s natural language capability initiatives, and they may lack confidence in their ability to make businesses better through end-to-end workflow improvements and assist CIOs in addressing employee and customer needs