NEW YORK (TheStreet) -- ServiceNow (NOW) - Get Report shares are taking a beating, down 20.34% to $60.04 on heavy trading volume Thursday morning after the cloud computing company in its fourth quarter earnings release gave a disappointing current year guidance below analysts' estimates.
After the markets closed yesterday, the company said it expects revenue for 2016 to be between the range of $1.34 billion to $1.37 billion, compared to analysts' forecasts of $1.37 billion.
Following this outlook, Mizuho Securities downgraded the company to "neutral" from "buy" and slashed its price target to $65 from $90.
However, the company's latest quarterly results of 20 cents a share on revenue of $285.7 million topped Wall Street's forecasts of 8 cents a share on revenue of $281 million.
These figures were also higher than last year's earnings of 3 cents a share on revenue of $198 million.
Separately, TheStreet Ratings currently has a Sell rating on the stock with letter grade of D+.
This is driven by multiple weaknesses, which TheStreet believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks TheStreet covers. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NOW