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News  ›  Investing.com

ServiceNow’s $7 Billion Gamble: Panic or Opportunity?

Investing.com Logo Investing.com By Jeffrey Neal Johnson
ServiceNow’s $7 Billion Gamble: Panic or Opportunity?

ServiceNow is considering a $7 billion acquisition of cybersecurity firm Armis, which triggered an 11.5% stock drop. The potential purchase is part of a strategic effort to enhance enterprise AI security and asset management, despite concerns about financial implications.

Insights
V   neutral

Smaller holding at $6.6 million, representing 5.2% of assets under management


NOW   neutral

The company is making strategic acquisitions to build an AI Control Tower, but the significant spending raises short-term financial concerns about potential shareholder dilution