ServiceNow (NOW)

ServiceNow (NOW) ServiceNow (NOW) You have probably heard about this company thousands of times and there's only one post which highlights what you need to know Service now reported and beat across all metrics, provided double digit growth, raised FY guidance and lifted their Now assist ACV targets, despite this stock is down roughly 15% from earnings. Main reason for the sharp drop was due to SHORT term headwinds from the wars which delayed deal closings with customers. The headwinds include margin compression regarding their gross and operating aswell as their revenue growth rates. On top of that leverage was added to fund Armis which will drag the blc sheet specifically for this year. Remember this is a SHORT term headwind. The main highlight which reinforced my thesis was the retention rates holding + the seat based model shifting to non seat based which is currently 50%. The main concern with SaaS was the original head count pricing would be infiltrated by AI which is very probable but NOW are positing themselves specifically to avoid this disaster. I can agree a lot of the Software businesses like Adobe, figma Will most likely be redundant, there will only be a few players left like NOW which have the stickiness and network effects that no one else has. At $90 a share, i can confidently say anyone willing to invest will see a 60-100% return in the next say 1-3 years. Thesis will still need monitoring but the current trajectory is exciting for this business. It may be hard holding a stock like this but you need to trust your own thesis and work, keen to hear what you all think.