10 Best Software Stocks to Buy According to Billionaires

3. 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.

With a strong focus on innovation and an expanding product portfolio, the company has already established itself as a key player in the enterprise software market. Driven by the growing demand for workflow automation, ServiceNow Inc. (NYSE:NOW) is expected to maintain steady growth. Building on this strength, the company announced on March 10 that it is acquiring the artificial intelligence firm Moveworks (a private company) for $2.85 billion. According to the company, Moveworks brings features such as a front-end AI assistant and enterprise search technology, which will enhance ServiceNow Inc. (NYSE:NOW)’s AI and automation capabilities to create new opportunities.

Although the acquisition has yet to significantly impact the stock, Stifel Nicolaus analyst Brad Reback reaffirmed a Buy rating on the shares, assigning a price target of $1,175. This figure is close to the consensus 1-year median price target of $1,200, suggesting a potential upside of over 40%.