1. ServiceNow, Inc. (NYSE:NOW)
Percentage of stake sold by ARK Invest in Q3: 100%
ARK Investment Management’s Q3 Stake Value: $0
Number of Hedge Fund Holders: 78
ServiceNow, Inc. (NYSE:NOW) is a leading provider of cloud-based software solutions that enable corporations to streamline their digital workflows. The company operates the Now platform, a cloud-based platform with integrated AI that aids governments and multinational companies in digitizing their processes. In the dynamic market for workflow automation solutions, ServiceNow, Inc. (NYSE:NOW) is well-positioned to succeed as the company’s clients continue to recognize the platform’s capacity for optimization and spurring business expansion.
With a price target of $1200, Barclays reaffirmed an Overweight rating on ServiceNow Inc. (NYSE:NOW) on January 17. The confirmation came after the company revealed plans to acquire Cuein, a company specializing in AI-powered conversation data analysis. According to ServiceNow Inc. (NYSE:NOW), the acquisition should be finalized in the first quarter of 2025. The goal of integrating Cuein’s platform is to strengthen ServiceNow’s Workflow Data Fabric technology.
For the third quarter of 2024, ServiceNow Inc. (NYSE:NOW) reported $2,715 million in subscription revenues, a 23% year-over-year growth, and total revenues of $2,797 million, a 22% increase from the preceding year. With a 26% year-over-year increase to $9.36 billion, the company’s current remaining performance obligations (cRPO) show significant potential for future revenue.
Ithaka US Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q4 2024 investor letter:
“Founded in 2004, ServiceNow, Inc. (NYSE:NOW) has become the leading provider of cloud-based software solutions that defi ne, 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.”
While we acknowledge the potential of NOW, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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