Investment management company Nightview Capital recently released its Q1 2026 investor letter. A copy of the letter can be downloaded here. In the first quarter of 2026, the market dynamics were driven by geopolitical and structural factors. Some concerns about market fear are valid; however, the market’s response has been overly broad instead of precise. Collectively, these two forces created an unpredictable economic backdrop and compelling buying opportunities. The Nightview Fund holds a concentrated portfolio of the highest-quality stocks. The Fund thrived in the first quarter actively by identifying opportunities. As the AI disruption challenged the software sector, the Fund aggressively rotated towards promising enterprise and platform software investments. The firm believes that the disruption is likely to happen at the margins, but AI is less a threat and more an opportunity for truly embedded software companies. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Nightview Capital highlighted ServiceNow, Inc. (NYSE:NOW) as a newly added position. ServiceNow, Inc. (NYSE:NOW) is a cloud-based software company that provides a platform for automating and managing digital workflows. On April 21, 2026, ServiceNow, Inc. (NYSE:NOW) closed at $100.14 per share. One-month return of ServiceNow, Inc. (NYSE:NOW) was -2.83%, and its shares lost 38.39% over the past 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a market capitalization of $104.75 billion.
Nightview Capital stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q1 2026 investor letter:
“ServiceNow, Inc. (NYSE:NOW): If you want to understand why we are bullish on enterprise software despite the AI disruption narrative, ServiceNow is the clearest expression of our thesis.
The platform is, in the most literal sense, the workflow engine of large enterprises. It manages IT service requests, HR processes, legal requests, facilities management, and, increasingly, the cross-departmental orchestration that large organizations require to function. Roughly 85% of the Fortune 500 uses ServiceNow in some capacity. The average customer has expanded their usage year over year, a pattern that has persisted for years running.
Our view is that AI does not threaten this business so much as it accelerates it…” (Click here to read the full text)
ServiceNow, Inc. (NYSE:NOW) ranks 25 on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 118 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the fourth quarter, up from 104 in the previous quarter. While we acknowledge the risk and potential of ServiceNow, Inc. (NYSE:NOW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ServiceNow, Inc. (NYSE:NOW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ServiceNow, Inc. (NYSE:NOW) and shared the list of best beginner stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
