10 Best Cloud Stocks To Buy According to Hedge Funds

8. ServiceNow Inc (NYSE:NOW)

Number of Hedge Fund Investors: 78

JMP Securities has raised the target price for ServiceNow Inc (NYSE:NOW) from $1,000 to $1,300. They are set to benefit from increased government spending and robust demand for its product suites that include an end-to-end workflow automation cloud platform. New deal wins and the strong performance of its core businesses have been a constant feature of the company in recent quarters.

NOW expects a 21% y-o-y increase in its Q4 earnings, driven by new client winnings and larger ticket sizes. The latest update, Xanadu is expected to be a game changer, providing industry-specific solutions across sectors like telecom, finance, media and technology. Its Agentic AI, a customer service application, has reduced the time to resolve an issue and is a big move to improve customer relationships. While its portfolio of products and client base has increased, the rollout of 150 innovations to secure governance and compliance will ensure a safer platform for its customers. The company also enjoys a gross margin close to 80% with profitability moving in line with expectations.