Here’s Why ServiceNow (NOW) Declined in Q3

Renaissance Investment Management, an investment management company, released its “Large Cap Growth Strategy” third quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -3.46% (net) compared to a -3.60% return for the Russell 1000 Growth Index and -4.88% return for the S&P 500 Index. The focus on high-quality stocks led the strategy to outperform the indexes in the quarter. The Consumer Discretionary sector significantly contributed to the strategy’s performance while the Technology sector detracted from the performance. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Renaissance Investment highlighted stocks like ServiceNow, Inc. (NYSE:NOW) in its Q3 2022 investor letter. Headquartered in Santa Clara, California, ServiceNow, Inc. (NYSE:NOW) is a global cloud computing solutions provider. On December 27, 2022, ServiceNow, Inc. (NYSE:NOW) stock closed at $380.64 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was -8.57%, and its shares lost 41.85% of their value over the last 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $76.889 billion.

Renaissance Investment made the following comment about ServiceNow, Inc. (NYSE:NOW) in its Q3 2022 investor letter:

“ServiceNow, Inc. (NYSE:NOW) was another detractor in the quarter. The company reported strong operating results, but management lowered full-year guidance after seeing broad-based demand weakness in their European markets and currency headwinds from the strong U.S. dollar.”

Image by MayoFi from Pixabay

ServiceNow, Inc. (NYSE:NOW) is in 16th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 103 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the third quarter, which was 99 in the previous quarter.

We discussed ServiceNow, Inc. (NYSE:NOW) in another article and shared Jim Cramer’s 10 comeback stocks. In addition, please check out our hedge fund investor letters Q3 2022 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.