10 Best SaaS Stocks to Invest In

4) ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 78

ServiceNow, Inc. (NYSE:NOW) caters to the SaaS industry as it offers cloud-based software solutions to enterprises. Its subscription revenue, which is a key metric for Saas businesses, went up by 23% YoY in Q3 2024. This growth stemmed from the strong adoption of ServiceNow’s core IT Service Management (ITSM) offerings and the expansion of its product portfolio. Notably, the calculated Remaining Performance Obligations, which indicates future revenue potential, increased 23.5% YoY in constant currency, compared to the previous quarter’s 22.5% growth.

On 16″ January, Cantor Fitzgerald initiated coverage of the company’s stock, giving an “Overweight” rating and a $1332 price target. The rating was backed by ServiceNow, Inc. (NYSE:NOW)’s move to strengthen its growth metrics with Cuein acquisition amid elevated Al adoption. As a result of the acquisition, the company has access to a leader in Al native conversation data analysis and insights. Cuein is expected to contribute to ServiceNow Al Agents’ efficacy.

ServiceNow, Inc. (NYSE:NOW)’s healthy position in IT Service Management (ITSM) offers a strong foundation for expansion into adjacent markets including Customer Service Management, HR service delivery, and field service management. Investment advisory firm Ithaka Group released the Q4 2024 investor letter. Here is what the fund said:

“Founded in 2004, ServiceNow, Inc. (NYSE:NOW) has become the leading provider of cloud-based software solutions that define, structure, manage and automate workflow services for global enterprises. ServiceNow pioneered the use of the cloud to deliver IT service management (“ITSM”) applications. These applications allow users to manage incidents and to plan new IT projects, provision clouds, manage application performance and build applications themselves. The company has since expanded beyond the ITSM market to provide workflow solutions for IT operations management, customer support, human resources, security operations and other enterprise departments where a patchwork of semi-automated processes have been used with varying success in the past. ServiceNow’s stock rose during the quarter, driven by strong fundamental performance and growing investor recognition of the company’s dominant position in monetizing AI workloads.”