5 Best Tech Stocks To Buy Now According To Billionaire Steve Cohen

02. ServiceNow, Inc. (NYSE:NOW)

Point72 Asset Management’s Stake Value: $179.716 million

Percentage of Point72 Asset Management’s 13F Portfolio: 0.75%

Number of Hedge Fund Holders: 99

Steve Cohen’s Point72 has been a shareholder of ServiceNow, Inc. (NYSE:NOW) since Q2, 2014. During this time, it sold its entire stake in the company several times. However, currently, it holds 377,936 ServiceNow shares, worth roughly $179.7 million.

With a Neutral rating and a $510 price target, Guggenheim analyst John DiFucci began covering ServiceNow, Inc. (NYSE:NOW) on August 11. ServiceNow, though “a very well-run firm,” will probably fall short of its long-term subscription revenue targets in 2024 and 2026, according to DiFucci.

Ensemble Capital recently published its 2022 Q2 investor letter. Here is what the fund specifically said about ServiceNow (NOW):

“ServiceNow is an enterprise software company that helps their corporate customers integrate all of their various software products into a unified platform. Their products are a key element of driving the digital transformation nearly every large company is undergoing. At the recent JP Morgan investor day, CEO Jamie Dimon explained that while the company could reduce expenses if needed should the economy slow, that their spending on digital transformation would continue as this spending was critical to the company managing costs and maximizing revenue over time. As an example of this type of spending, Dimon specifically pointed to ServiceNow, calling out that the company’s products now oversaw the single largest collection of JP Morgan data and highlighted that working with them had saved JP Morgan $50 million over the past few years.

While we have high expectations for ServiceNow’s long-term growth rate, at the company’s investor day in late May they offered an increased growth outlook for the next five years as they target even higher levels of growth than we have been expecting.”