ServiceNow's Acquisition Streak Could Cause Investor Angst -- Market Talk

Dow Jones12-16 04:27

1527 ET - ServiceNow's flurry of acquisitions this year could cause a stir amongst investors, KeyBanc Capital Markets analysts say in a note. The company has not historically pursued many acquisitions relative to other software companies of its size, but so far this year it has announced its two largest acquisitions to date, the analysts say. "If this M&A streak is the beginning of a trend and not just a one-time blip investors may not view it favorably," they say. Investors could grow concerned that the company's organic innovation is slowing as it moves into more areas outside its core business, they say. Investors could also argue that the billions spent on AI companies would have been better spent investing on internal projects or returned back to them, they say. The analysts note that they wrote the analysis before Bloomberg reported the company is nearing an agreement to buy Armis. (kelly.cloonan@wsj.com)

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December 15, 2025 15:27 ET (20:27 GMT)

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