To The Moon

ServiceNow(NOW) has been one of the stocks I continued to collect during this major pullback, even when the price action was far from comfortable. The recent weakness was driven partly by concerns that AI could disrupt traditional software companies, together with the broader pressure on high-growth tech stocks. But for me, a falling share price does not automatically mean the business thesis is broken. In fact, when a company I like experiences a major correction while its underlying fundamentals remain solid, I see it as an opportunity to gradually build my position rather than panic.

The biggest reason I remain comfortable with ServiceNow is the quality and visibility of its business. In Q2 2026, subscription revenue grew 24.5% year over year to $3.88 billion, while total remaining performance obligations reached $29 billion, up 21%. ServiceNow also said its AI business crossed $1 billion in annual contract value. These numbers tell me that customers are still spending heavily on the platform, and AI is not simply a threat to ServiceNow. It is increasingly becoming part of the company's growth strategy.

I also like ServiceNow's position in enterprise AI because the company is not trying to compete purely on having the biggest AI model. Its strength is connecting AI with workflows, data, security and actual business processes. With products such as Now Assist, AI Control Tower and Otto, ServiceNow is positioning itself as a platform that helps companies actually deploy AI into their operations. That gives me more confidence in the longer-term story, even though I fully expect the stock to remain volatile while the market figures out how AI will reshape enterprise software.

Of course, I am not expecting ServiceNow to recover in a straight line. Rising bond yields, valuation concerns and the ongoing debate about AI disruption can continue to create pressure on software stocks. That is exactly why I prefer collecting gradually instead of putting everything in at once. I started building my position during the pullback, and after the recent rebound, I am becoming more comfortable holding what I have for the mid to long term rather than worrying about every short-term move.

For me, this is another example of why I prefer to plan the trade and trade the plan. I did not buy ServiceNow because I expected an immediate rebound. I bought it because I believe the company still has strong recurring revenue, enterprise customer relationships and a meaningful role in the AI-driven transformation of business software. The rebound is certainly encouraging, but the bigger thing I am watching is whether the fundamentals continue to support the long-term thesis. For now, I am happy to hold, stay patient and let ServiceNow's business growth do the heavy lifting over time.

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