Baron Funds, an investment management company, released its “Baron Opportunity Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 2.38% (Institutional Shares) compared to a 3.37% decline for the Russell 3000 Growth Index and a 4.88% decline for the S&P 500 Index. The fund fell sharply for the year-to-date and trailing 12-month periods; however, the philosophy of the fund is to achieve strong long-term performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds discussed stocks like ServiceNow, Inc. (NYSE:NOW) in the Q3 2022 investor letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a software company that provides enterprise cloud computing solutions. On October 31, 2022, ServiceNow, Inc. (NYSE:NOW) stock closed at $420.74 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was 2.23% and its shares lost 38.72% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $84.989 billion.
Here is what Baron Funds specifically said about ServiceNow, Inc. (NYSE:NOW) in its Q3 2022 investor letter:
“ServiceNow, Inc. (NYSE:NOW) is an enterprise software leader offering cloud-based solutions that improve employee workflow efficiency through automation and digitization. The company’s brand, extensive go-to-market reach, and product excellence allowed it to materially grow its business with the largest companies in the world, including 80% of the Fortune 500. As of its latest quarter, the company had over 1,400 customers spending close to $4 million per year on average, and recently announced a $250 million contract with a governmental entity. ServiceNow’s industry-leading customer renewal rates of over 97% underscore the criticality of the company’s solutions to its customers. The stock underperformed as quarterly bookings were negatively impacted by longer-than-expected sales cycles due to macroeconomic dynamics creating a more complex spending environment. In addition, with international revenues accounting for about one-third of the company’s business, investors expect foreign currency and pricing dynamics to generate additional headwinds. We continue to believe in the company’s long-term opportunities as it benefits from digitization initiatives, a unique and growing product line, and strong management team.”
Photo by Danial Igdery on Unsplash
ServiceNow, Inc. (NYSE:NOW) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the second quarter which was 90 in the previous quarter.
We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared the list of the biggest internet companies in the world. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.
Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.
At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.
Do the math. According to Musk, this technology could be worth $250 trillion by 2040.
Put another way, that’s roughly equal to:
175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias
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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.
Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.
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Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.
Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.
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