The author has a pre-existing long position in NOW with a $104 cost basis, and the stock is now trading in the $80s, presenting a ~20%+ drawdown from their entry. The author perceives the lower price as an opportunity to average down and improve their overall cost basis, implying a belief that the current price is attractive relative to its longer-term value. The trade idea is to add to a losing position to lower the average cost, based on the premise that the recent decline is an overreaction or a temporary weakness. The primary risk acknowledged is the "falling knife" scenario—that the price decline will continue after purchase. Broader risks from comments include AI disrupting NOW's seat-based pricing model and slowing growth.