15 AI Stocks to Watch: News and Analyst Ratings

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6. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 78

ServiceNow, Inc. (NYSE:NOW) is a cloud-based, AI-driven platform, that helps enterprises automate multiple management workflows.

On November 25, Needham analyst Mike Cikos maintained a “Buy” rating on ServiceNow, Inc. (NYSE:NOW) and a $1,150.00 price target. Key factors noted during a recent investor meeting have led to this buy rating. A larger renewal cohort is expected in 2025, initially constraining Current Remaining Performance Obligation (cRPO) growth, but expected to potentially benefit from customers transitioning to Xanadu, a platform offering advanced GenAI capabilities. Another factor adding to the positive outlook is the disciplined approach to Pro Plus (the company’s new generative AI SKU) pricing. The pressure on the Subscription Gross Margin in the coming year has already been factored into the analysis.

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