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Friday, 04/14/2023 3:31:53 PM

Friday, April 14, 2023 3:31:53 PM

Post# of 349
>>> ServiceNow, Inc. (NYSE:NOW) - Number of Hedge Fund Holders: 97


https://www.insidermonkey.com/blog/5-stocks-about-to-pop-according-to-jim-cramer-in-retrospect-1137168/3/


6-Month Performance as of March 30 (Relative to SPY): 2.11%

One of Cramer’s favorite stocks from the software space was ServiceNow, Inc. (NYSE:NOW). Cramer did not think that the company’s CEO would “let this stock continue to roll over and play dead”. ServiceNow, Inc. (NYSE:NOW) has outperformed the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) by 2.11% over the past 6 months, as of March 30.

At the end of Q4 2022, ServiceNow, Inc. (NYSE:NOW) was spotted on 97 investors’ portfolios that held collective stakes worth $3.85 billion in the company. Of those, SCGE Management was the most prominent investor in the company and held a position worth $363 million.

Here is what Polen Capital had to say about ServiceNow, Inc. (NYSE:NOW) in its Q4 2022 investor letter:

“ServiceNow, Inc. (NYSE:NOW) is an $80 billion market cap business based in California. Its purpose is to make the world of work, work better for people. Getting a job done in an enterprise (what the company refers to as “workflow”) usually requires different people in various functions of an organization to work together. Often, they rely on different technology systems and inefficient manual processes to complete each step of the job before moving on to the next.

ServiceNow believes the most effective digital transformation initiative utilizes tools that can integrate workflows across siloed systems, departments, processes, and people. The company is solving what is arguably the biggest pain point in the biggest profit pool in the world (enterprises). Consider the explosion in data growth and all the software point solutions emerging constantly. ServiceNow wrangles all this into a fully integrated dashboard on a global scale with global customers in every industry. Nearly 100% of revenues are subscription based with a 99% renewal rate, and the company currently has no direct competition, according to our research. ServiceNow started with IT workflow, and today, ~40% of net new annual contract value is in non-IT workflows. Through constant innovation, the business has continued to expand its total addressable market, and we think it can grow free cash flow (FCF) at a 20%+ annualized rate for the next three to five years. At less than 30x FCF, we thought the valuation was attractive.”

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