A Basing Growth Stock, And Google's Cloud Computing Quest

A Basing Growth Stock, And Google's Cloud Computing Quest

Cloud computingA Basing Growth Stock, And Google's Cloud Computing Quest continues to drive a number of the leading growth segments of the stock market.

Amazon.comAdobe and Microsoft all carry a cloud computing premium. Others like ServiceNow and growth stock peers including Workday and Salesforce.com are more pure-play cloud computing names.

ServiceNow shares aced a 37% gain in 2018. That was despite easing in the fourth quarter, after sprinting ahead 58% through September. The stock has been basing since that September pullback.

The Santa Clara, Calif.-company has turned in an unbroken chain of double-digit or better earnings and revenue growth running back to September, 2014. Estimates for the fourth quarter call for an 83% rise in earnings and a 31% revenue gain.

On the earnings line that is just above the company’s average over the past four quarters. On the revenue line, it would mark a slight slowdown.

But ServiceNow plans to report next Wednesday, after the stock market closing bell. A January 16 note from Piper Jaffray analyst Alex Zukin projects the company will outperform expectations in terms of subscription and bookings revenue.

That would point to a slight beat vs. consensus views in overall revenue. And that gain could be mitigated by somewhat weak guidance. About a third of ServiceNow’s revenue comes from overseas, and currency exchange factors could weigh on the company’s outlook, pressuring revenue and operating margin guidance below consensus views.

 

 

 

 

This article originally appeared on Investors.com.  To read the full article, click here.

 

 

 

 

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