NOW - ServiceNow Inc.

Mentioned as jumping from mid-$80s to $140 after similar government investment news. Cited as another example of the 'Trump effect.' No explicit recommendation given.

Mentioned as one of the SaaS stocks providing a good entry point after the software rebound selloff.

Chuck Akre bought ServiceNow, described as a software and data business with deep competitive advantages.

Host acknowledges it's a high-quality business that passed Chuck Akre's three-legged stool test, with strong revenue growth (20%+), high gross margins (76%), and improving fundamentals. However, at current prices the stock analyzer only shows ~10% return, which isn't exciting enough. Host says he'll wait for a better entry price. CEO bought $3M of stock and tied his pay to stock performance.

Host has been recommending buying the dip on ServiceNow for a long time. He cites Jensen Huang's bullish comments on software, a sector-wide relief rally, Snowflake's earnings blowout (as a partner), and Bank of America reinstating coverage with a buy rating and $130 price target as reasons for continued upside.

Similar to Salesforce, host believes ServiceNow is vulnerable to AI disruption. He questions whether companies like ServiceNow with high gross margins can maintain pricing power as AI makes it easier to replicate their services.

ServiceNow provides cloud software for enterprise workflow automation. Despite being up 33% since ZipTrader's May 7th deep dive, the stock is still down ~40% from 2024-2025 highs. It's a cash machine with ~32% operating margin and mid-30s free cash flow margin, generating $1.67B in operating cash flow in a single quarter. Remaining performance obligations of $27.7B are up 25%, locking in future revenue. Subscription revenue growth accelerated to 22% from 19.5%, rare for a $14B revenue company. Their Now Assist AI product saw customers spending over $1M/year grow 130%+ YoY, with a $1.5B target. Management targets $32B revenue by 2030.

Felix mentions that ServiceNow is down significantly (investor would have $22k from $50k) but suggests it could be an opportunity for those with capital. He explicitly says he's not telling viewers to buy it, but that it's interesting.

ServiceNow shows strong momentum and insider buying, indicating potential for further growth.

Up 14% in the rally. Host mentions it as a quality software stock, though he notes it was down 38% recently which he considers a blunder for not picking it in the stock draft.