Meet Kevin on $NOW (Oct 29, 2026)
Service Now is bearish: it cannot pass on hyperscaler costs, pricing power is yellow/red and margins are worsening. Revenue rose 22% versus a 46% rise in subscription cost of goods sold; later revenue rose about 20.5% versus a 58% rise in subscription expenses. Management expects professional services gross loss percentage to increase for the remainder of the year; the stock is down 24%.
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What about service now? Because a lot of people are saying, Kevin, service now. What's your opinion on service now? Is this the sign that AI is just going to end up destroying more and more of the stock market?
Who's going to win if companies like Service Now are going to end up falling? Uh, you know, what's it down now? It's down 24%. Look at that. Fell off a cliff.
Service Now, July 8th, came in excited to see if Service Now could join Palunteer and Salesforce. I came away with some red flags on pricing power. I want to see margins improve.
Their margins are sucking. Their revenues were up 22% when we looked at this in June. and their subscription costs of goods sold were up 46%.
Then they ended up having earnings. And on July 23rd, also in our course member live streams, we said pricing power yellow red still can't pass on hyperscaler costs. Margins are still worsening. They're waiting for hyperscaler deflation.
remember we did this before the market opened before Wall Street gave Service Now even more of a middle finger at the open. First of all, their revenues were up about 20.5%. and their subscription expenses are up 58%.
That's the same damn problem from July. They're stuck with bad, stinky pee pee.
But listen to their explanation. Their explanation is buried in their documents. We manually found it. No AI. quote, "We expect our professional services and other gross loss percentage to increase for the remainder of the year as we continue to accelerate customer value realization and support our customers in gaining maximum value of our latest offerings."
What the hell does that mean? Well, I wrote it right here. I wrote this is an insane way to say we are spending 58% more to make 20% more. That's why the stock is down boys and girls.
I don't think Service Now who's actually just blowing more money on the hyperscalers.
whether it's Microsoft what's happening with SKHEX uh what's happening with Seagate Western Digital uh you know Nvidia whatever doesn't matter very bullish about these CDS is coming down I'm bullish on that a dovish Fed I'm bullish on that service now they suck healthare very bullish healthcare Google don't care
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