ServiceNow Short Interest Ratio and Short Volume

Short interest is the volume of ServiceNow shares that have been sold short but have not yet been covered or closed out. As of October 30th, traders have sold 2,470,000 shares of NOW short. 0.00% of ServiceNow's shares are currently sold short. View details.

The short interest ratio, also known as the "days to cover ratio", is calculated by dividing the number of shares of a stock sold short divided by its average trading volume. A short interest ratio ranging between 1 and 4 generally indicates strong positive sentiment about a stock and a lack of short sellers. A short interest ratio of 10 or greater indicates strong pessimism about a stock. ServiceNow currently has a short interest ratio of 2.0.

ServiceNow saw a decline in short interest during the month of October. As of October 30th, there was short interest totaling 2,470,000 shares, a decline of 12.4% from the previous total of 2,820,000 shares. Changes in short volume can be used to identify positive and negative investor sentiment. Investors that short sell a stock are betting that its price will decline in the future. An increase in short sale volume suggests bearish (negative) sentiment among investors. A decrease on short sale volume suggests bullish (positive) sentiment.

0.00% of ServiceNow's shares are currently sold short. Here is how the short interest of companies in the industry of "prepackaged software" compare to ServiceNow: salesforce.com, inc. (0.00%), Adobe Inc. (0.97%), Oracle Co. (1.34%), SAP SE (0.25%), Shopify Inc. (0.00%), Square, Inc. (0.00%), Intuit Inc. (0.78%), VMware, Inc. (11.15%), Activision Blizzard, Inc. (1.12%), and Autodesk, Inc. (1.19%).

As of the most recent reporting period, the following stocks had the largest short interest positions: Charter Communications, Inc. ($4.66 billion), Aon Plc ($3.83 billion), Analog Devices, Inc. ($3.33 billion), ViacomCBS Inc. ($3.13 billion), Snap Inc. ($3.05 billion), The Clorox Company ($2.85 billion), Uber Technologies, Inc. ($2.80 billion), Moderna, Inc. ($2.26 billion), Simon Property Group, Inc. ($2.02 billion), and International Flavors & Fragrances Inc. ($1.96 billion). View all of the most shorted stocks.

Short selling NOW is an investing strategy that aims to generate trading profit from ServiceNow as its price is falling. ServiceNow's stock is trading down $4.08 today. To short ServiceNow stock, an investor borrows shares, sells them and buys the shares back on the public market later to return it to the lender. Short sellers are betting that ServiceNow will decline in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the trader's profit.

A short squeeze for ServiceNow occurs when it has a large amount of short interest and its stock appreciates in price. This forces short sellers to cover their short interest positions by buying actual shares of NOW, which in turn drives the price of the stock up even further.

Short interest is typically published by a stock exchange once per month. However, NASDAQ publishes a report for U.S. stocks, including NOW, twice per month. The most recent reporting period available is October, 30 2020.