$ServiceNow(NOW)$ Not financial advice. If you think you missed the boat, you haven’t by a lot. Here’s why.
This company lost nearly two-thirds of its market cap because of the overhyped “AI is killing software” narrative, while absolutely nothing seemed wrong with their business. They have twice their annual sales in contracted revenue. They upped their AI guidance from $10B to $15B for the year. Their retention rate is 97%. They are deeply embedded in enterprises and recently acquired two companies to strengthen their moat. Their AI sales are less than 10% of their annual revenue right now, and this is only expected to grow as they add more AI features across their suite and adoption of agentic workflows continues. Jensen Huang has said that software will benefit tremendously from AI.
So… long term, it is expected to be a winner.
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