Billionaire Stephen Mandel’s 5 Must-Buy Tech Stocks

3. ServiceNow Inc (NYSE:NOW)

Value of Lone Pine Capital‘s 13F Position: $1.1 billion

Number of Hedge Fund Shareholders: 90

Lone Pine Capital pared down its stake in ServiceNow Inc (NYSE:NOW) by 2% during Q1, with the fund owning 1.98 million shares at the end of March. Hedge fund ownership of NOW peaked in the first quarter of 2021 and has dipped by 13% since. A fellow Tiger Cub, Andreas Halvorsen of Viking Global, raised the size of his NOW holding by 98% during Q1 to 440,450 shares.

A provider of cloud-based IT automation tools, ServiceNow Inc (NYSE:NOW) has an impressive collection of customers, which includes 80% of Fortune 500 companies. ServiceNow grew its revenue by 31% to $5.9 billion in fiscal year 2021. The company is expected to grow its subscription revenue and non-GAAP EPS by another 26% and 24% respectively in FY22. The company also raised its FY24 and FY26 subscription revenue projections this year, pushing each of them $1 billion higher to $11 billion and $16 billion respectively.

Stifel analyst Brad Reback believes ServiceNow Inc (NYSE:NOW)’s updated projections are “very achievable” and that the company is capable of sustaining 20%+ revenue growth over the longer-term, along with significant margin expansion. He has a ‘Buy’ rating and $550 price target on the stock.