ServiceNow (NYSE: NOW) shares tumbled 27% after the company's third-quarter earnings report renewed fears that its business could be disrupted by artificial intelligence (AI). However, with revenue growing by more than 20% and the company raising guidance, the plunge in the stock price appears to be an extreme overreaction. The stock is now down 31% on the year. Let's take a closer look at its Q3 results and prospects to see why I think the stock looks like a buy on this dip. The investor panic in ServiceNow's stock largely centers around the software-as-a-service (SaaS) stock reporting a smaller-than-typical quarterly earnings beat and issuing less robust guidance than expected.
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