NOW - ServiceNow Inc.

Strong earnings beat, AI business crossing $1B in contracts, CRPO reacceleration, beaten-down price creating value.

ServiceNow is a leader in AI-powered workflow automation with strong revenue growth (22% CAGR), high free cash flow (P/FCF of 23 vs P/E of 62), and a massive backlog ($28B). The host's conservative valuation yields a middle intrinsic value of $145 vs current $105, implying ~13.5% annual return. Risks include AI disruption and competition from hyperscalers.

Chris Patel sold 75% of his position due to earnings concerns; host expects beat but stock could still decline. Neutral stance.

Oversold on AI disruption fears but actually benefiting from AI agents. Growing over 20%, high renewal rates, AI revenue guidance raised. Low PEG ratio. Swing trade with upcoming earnings as catalyst.

ServiceNow is a solid company but the host is less enthusiastic due to its slower margin trajectory and high valuation. He prefers Palantir for explosive growth.

Good mix with Palantir and Microsoft.

Had bad pre-market reaction; if it breaks under $105, look for downside continuation.

ServiceNow is a top software name included in host's favorite list, benefiting from AI and digital transformation.

Trump's accounts bought ServiceNow. AI control tower, subscription revenue growth 22%, Now Assist tracking to $1.5B.

20%+ growth, accelerating average revenue per customer, high gross margins (~80%), Rule of 40 at 47%, and forward P/E of 23x—historically traded at 60-70x. Backlog growing, renewal rates transparent.