Investment advisory firm Ithaka Group released the “Ithaka US Growth Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The outstanding gains that the global equity markets witnessed during the year continued in the fourth quarter of 2024. More than any other year in history, the S&P 500 reached 57 new all-time highs. During the quarter, the portfolio returned 8.4% (gross of fees) compared to the R1000G, which increased by 7.1%. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Ithaka US Growth Strategy highlighted stocks like ServiceNow, Inc. (NYSE:NOW), in the fourth quarter 2024 investor letter. ServiceNow, Inc. (NYSE:NOW) offers intelligent workflow automation solutions for digital businesses. The one-month return of ServiceNow, Inc. (NYSE:NOW) was -1.65%, and its shares gained 41.72% of their value over the last 52 weeks. On January 16, 2025, ServiceNow, Inc. (NYSE:NOW) stock closed at $1,057.16 per share with a market capitalization of $218.11 billion.
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.”
A team of software engineers at desks working on code for a cutting-edge cloud computing solution.
ServiceNow, Inc. (NYSE:NOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the third quarter which was 97 in the previous quarter. In Q3 2024, ServiceNow, Inc.’s (NYSE:NOW) subscription revenue increased 22.5% year-over-year to $2.715 billion. While we acknowledge the potential of ServiceNow, Inc. (NYSE:NOW) as an investment, our conviction lies in the belief that 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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed ServiceNow, Inc. (NYSE:NOW) and shared the list of top unlikely AI stocks with tremendous upside potential. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.