5 Best Software Stocks To Buy According To Hedge Funds

03. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders as of Q2, 2022: 99

ServiceNow, Inc. (NYSE:NOW) is a cloud services provider that offers its customers a host of technologies such as artificial intelligence, machine learning, workflow management, and encryption. The firm is based in Santa Clara, California, the United States. On October 13, UBS analyst Karl Keirstead lowered his price target on ServiceNow, Inc. (NYSE:NOW) to $465 from $515 and kept a Buy rating on the shares.

As of Q2 2022, 99 of the 895 hedge funds tracked by Insider Monkey owned shares of ServiceNow, Inc. (NYSE:NOW), valued at $5.2 billion. Its largest shareholder was Ken Fisher’s Fisher Asset Management, with ownership of 1.5 million shares valued at $694 million.

Here is what Aristotle Capital specifically said about ServiceNow, Inc. (NYSE:NOW) in its Q2 2022 investor letter:

“ServiceNow, Inc. (NYSE:NOW) provides digital workflows on a single enterprise cloud platform called the Now Platform. The company offers products on the Now Platform and standard applications specially designed for automating IT, Employee and Customer workflows. ServiceNow delivers software via the Internet through a simple and easy-to-use interface that can deploy the package offerings and allow customers to build their applications. Customers can choose to host software by themselves or through third-party service providers. The company offers professional services, both directly and through partners, to help customers deploy and utilize the products and platform. We consider ServiceNow a leading beneficiary of the digital transformation initiatives taking place in enterprises around the world. We believe it is the best-of-breed technology company with attractive topline growth metrics supported by a growing Total Addressable Market (TAM) along with positive FREE cash flow which is recycled into accelerating growth initiatives both organically and through selective M&A.”