10 Best Long Term Growth Stocks to Buy According to Billionaires

2. ServiceNow, Inc. (NYSE:NOW)

5-Year Revenue Growth: ~25.9%

Number of Billionaire Investors: 19

Number of Hedge Funds: 110

ServiceNow, Inc. (NYSE:NOW) offers a cloud-based solution for digital workflows. TD Cowen analysts maintained a “Buy’’ rating on the company’s stock, with a price objective of $1,300.00. The firm’s analysts highlighted the company’s announcement to acquire the AI company, Moveworks. The acquisition is expected to combine ServiceNow, Inc. (NYSE:NOW)’s agentic AI and automation strengths with Moveworks’ front-end AI assistant and enterprise search technology in a bid to unlock new experiences for every employee. With Moveworks’ acquisition, the company is expected to take another giant leap forward in agentic AI-powered business transformation.

With businesses seeking AI-powered solutions in a bid to improve efficiency and decision-making, ServiceNow, Inc. (NYSE:NOW)’s expanded AI capabilities can fuel strong growth and market share gains. Its healthy position in workflow automation offers a robust foundation for integrating AI throughout the product portfolio. This can result in increased customer adoption, higher-value contracts as well as expansion into new market segments, ramping up ServiceNow, Inc. (NYSE:NOW)’s revenue growth and profitability.

Sands Capital, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:

“ServiceNow, Inc. (NYSE:NOW) shares advanced following its third-quarter business results, which revealed impressive execution at scale across the company’s product suite.

The business exceeded both top- and bottom-line expectations, with subscription revenue growing 22 percent in constant currency and adjusted operating margins expanding to 31 percent. Momentum continues in its Pro+ generative artificial intelligence (AI) product, which we estimate is generating nearly $100 million—a roughly 200 percent increase relative to the prior quarter. Outside of AI, momentum was broad across products and customer segments.

Over our five-year horizon, we expect ServiceNow to sustain over 20 percent top-line growth with incremental upside from continued progress in its AI-enabled products. We view its durable growth fueled by a broad product suite, paired with AI-related upside, as favorable relative to peers that trade at comparable valuations with weaker platform opportunities.”