ServiceNow Casts The AI Doomsday Narrative Out Of The Window (Rating Upgrade)

JR ResearchInvesting Group LeaderFollow5ShareSavePlay(16min)CommentsSummaryServiceNow is now upgraded to Buy, capitalizing on the AI apocalypse that has driven its valuation to historically low levels. Even the best of breed couldn't escape unscathed.NOW demonstrates robust fundamentals: >20% revenue growth expected for FY2026, operating margins above 30%, and gross margins near 80%. Do these margins spell impending doom?AI integration is accretive, with $600M in AI annual contract value achieved and a $1B target for 2026, reinforcing NOW's platform moat. And there's more to come.Management signals conviction via a $3M insider stock purchase and a $5B buyback authorization, underscoring confidence in long-term execution.Investors who are still sitting on the sidelines shouldn't miss this glorious opportunity to add before the stock recovers further.Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More » JHVEPhoto/iStock Editorial via Getty Images ServiceNow: Even the Best of Breed Have Nowhere to Hide During last week's software forest fire, there was simply nowhere to hide. That's true even for arguably the best software companies, which supposedly boast some of theThis article was written byJR Research47.01K FollowersFollowJR Research is an opportunistic investor. I was recognized by TipRanks as a Top Analyst, and also by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. I identify attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. My picks have consistently demonstrated market outperformance over time. My approach combines timely and sharp price action analysis with fundamentals as my foundation. I also tend to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. I run the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. My main ideas revolve around stocks with strong growth potential, and also well-beaten contrarian plays. I designed the group for investors seeking to capitalize on growth stocks with solid fundamentals, robust buying momentum, and appealing turnaround plays to generate alpha consistently. Learn moreAnalyst’s Disclosure: I/we have a beneficial long position in the shares of CRM, NOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.