A cloud-based enterprise platform that is heavily focused on AI and automation, ServiceNow (NYSE:NOW | NOW Price Prediction) shares are up 8.7% over the past week, snapping a stretch that took the stock down 41% over the past year. Reddit sentiment jumped from a neutral 54.5 monthly average to a bullish 70.7 over the past week. Two things drove that shift: Nvidia CEO Jensen Huang argued the market mispriced enterprise software, and ServiceNow launched its Autonomous Workforce suite on February 26, giving retail investors a concrete product to evaluate as they reassess whether the AI-driven selloff in enterprise software was justified.
What Reddit Is Debating
Discussion across r/wallstreetbets, r/stocks, and r/investing is tilting bullish since late February, less “buy the dip” and more “was the AI threat to software stocks overblown?” Three data points are driving that reassessment:
- Now Assist ACV has surpassed $600 million, tracking toward a $1 billion 2026 target, with a price uplift exceeding 30% on Now Assist subscriptions
- The Autonomous Workforce launch claims 90% autonomous resolution of IT requests, with Moveworks-based conversational AI integrated into the platform
- Operating margin hit 33.5% in Q3 2025, 300 basis points above guidance, with free cash flow margin raised 200 basis points for the full year
The post that catalyzed the late-February surge on r/wallstreetbets drew 311 upvotes and 103 comments:
Why Nvidia’s Jensen Huang thinks the market got it wrong on software companies
by u/wallstreetbets in wallstreetbets
One top comment captured the prevailing logic: “Jensen said that companies like ServiceNow cannot be replaced by AI, and Wall St and the retail folks were too regarded to realize it.”
On r/stocks, a post titled “ServiceNow’s CEO Makes Bold $20 Million Stock Purchase and Pledges to Lead Through 2030” drew 203 upvotes and 43 comments:
ServiceNow’s CEO Makes Bold $20 Million Stock Purchase and Pledges to Lead Through 2030
by u/stocks in stocks
On r/investing, a post asking “This makes no sense. Can someone smart explain this?” drew 460 upvotes and 148 comments as investors debated the AI-driven software selloff:
This makes no sense. Can someone smart explain this?
by u/investing in investing
The Unit Economics Behind the Bounce
One of the most critical ServiceNow units, AI Agent Assist consumption grew 55x since May 2025, and agentic use cases require 5 to 12 times the workflow volume of standard requests. That multiplier is helping the company convert AI adoption into revenue without simply adding seats. CEO Bill McDermott framed it on the Q3 call: “Without cross-enterprise workflows, so-called agentic AI is just another one-dimensional chatbot.” Free cash flow grew 26% year-over-year to $592 million in Q3 2025, and RPO ended the quarter at $24.3 billion, up 23% in constant currency.
The Valuation Gap
As of mid-day March 2nd, NOW is trading at $110.20, down 28% year-to-date and well off its 52-week high of $211.48. Analyst outlook includes Needham, which holds a Buy rating with a $155 price target, and Wedbush added ServiceNow to its IVES AI 30 list. The near-term catalyst is Q4 2025 earnings, which will show whether Now Assist ACV is on pace for the $1 billion target and whether the consumption model is expanding margins or adding billing complexity.
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