Shares of ServiceNow Inc (NYSE:NOW) are sharply lower this morning, after reports that the software name is in talks to acquire cybersecurity startup Armis for $7 billion as early as this week. A downgrade from Keybanc to "underweight" from "sector weight" is weighing on the shares as well, with the firm citing risks associated with AI. Amid this volatility, NOW is on today's short sell restricted (SSR) list.
ServiceNow stock was last seen down 10.3% to trade at $776.13, gaping below former support at $800 that provided a floor in late November and early December. Today's price action has also knocked the shares below several long-and short-term trendlines, and set them on track their largest single-day percentage drop since January. Since the start of 2025, the security has shed 18.4%.
Over in the options pits, ServiceNow stock has seen 6,045 calls and 7,488 puts exchanged so far today -- triple the overall volume typically seen at this point. The February 640 put is the most popular, with new positions being sold to open there.
