10 Best SaaS Stocks to Buy According to Billionaires

2. ServiceNow Inc. (NYSE:NOW)

Number of Billionaire Investors: 19

Billionaire Holdings: $3.9 Billion

Number of Hedge Fund Holders: 110

ServiceNow Inc. (NYSE:NOW) provides a cloud-based platform for digital workflows, enabling organizations to automate and optimize their business processes. Its Now Platform offers solutions across IT service management, customer service, HR, and other areas.

ServiceNow Inc. (NYSE:NOW) continues to grow as a key player in enterprise software, driven by rising demand for workflow automation. On March 10, the company announced the $2.85 billion acquisition of AI firm Moveworks. Moveworks’ AI assistant and enterprise search technology will enhance ServiceNow’s AI and automation capabilities, unlocking new opportunities for growth.

Concerning the strategic benefits of the acquisition, an RBC Capital analyst viewed the acquisition of Moveworks as a positive step in advancing the company’s AI assistant capabilities rather than a weakness in its current offerings. While the analyst reiterated his Outperform rating, he lowered price target on the shares from $1,210 to $986 because of broader peer valuation multiple compression. Consensus 1-year median price target on ServiceNow Inc. (NYSE:NOW) currently stands at $1,200, suggesting a potential upside of over 40%.