U.S. Markets closed

ServiceNow stock hits record high after earnings, buoys other cloud-software companies

Jeremy C. Owens

Cloud-software companies flew higher in Thursday trading after a strong earnings report from ServiceNow Inc. that sent that company's stock to record highs. ServiceNow headed more than 14% higher in Thursday trading, challenging for its largest single-day percentage gain in history, currently trailing only a 15.3% gain on April 25, 2013. The cloud-software company reported stronger-than-expected earnings after the bell Wednesday, thanks to strength with larger customers buying a range of services, according to analysts. "Turns out Enterprise still very interested in best-of-breed software platforms," Stifel analysts wrote while raising their price target on the stock from $180 to $210. Other cloud-software companies also hit all-time highs thanks to big gains, including security company Zscaler Inc. , which was up more than 6% Thursday; Workday Inc. , which was up more than 5%; and Atlassian PLC , which tied an intraday record high and was headed for a closing high with gains of more than 4%. The iShares Expanded Tech-Software Sector ETF was trading 2% higher, beating gains for the Nasdaq Composite Index and S&P 500 index.