ServiceNow shares drop 12% after CEO warns of fierce macro headwinds in interview
ServiceNow Inc.'s stock tumbled 12% on Tuesday following an interview in which its chief executive, Bill McDermott, warned of some serious macro headwinds. "You're at 41-year high inflation. The dollar right now is the highest it's been in over two decades. We have interest rates rising. People worried about security. You've got a war in Europe. So, the mood is not great," McDermott said in a "Mad Money" segment on CNBC that aired after markets closed Monday. "You're going to see the headwind of the dollar right now against well-known technology brands. No one's going to outrun the currency right now." McDermott's comments were made on the state of the tech sector, and not specifically about ServiceNow, which reports second-quarter earnings on July 27. In a statement to MarketWatch, a company spokesperson said: "No company is in a better position to help customers innovate through the current macro environment than ServiceNow. Overall, demand for digital technology remains robust. Our customers recognize economic challenges but continue to indicate sizable growth in IT spend." Shares of ServiceNow have declined 34% so far in 2022, while the broader S&P 500 index is down 19%.
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