ServiceNow (NOW) Traded Down Due to Multiple Headwinds

3 days ago 6

Soumya Eswaran

Thu, November 27, 2025 astatine 7:15 AM CST 3 min read

Sands Capital, an concern absorption company, released its “Sands Capital Select Growth Strategy” Q3 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. U.S. large-cap maturation equities continued to retrieve from a crisp sell-off successful aboriginal April. Strong firm earnings, capitalist enthusiasm astir artificial quality (AI), and increasing expectations for Federal Reserve argumentation easing drove the robust gains. The portfolio returned 6.3% (net) successful the quarter, compared to the benchmark's 10.5% gain. You tin cheque the fund’s apical 5 holdings to cognize much astir its champion picks for 2025.

In its third-quarter 2025 capitalist letter, Sands Capital Select Growth Strategy highlighted stocks specified arsenic ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) offers intelligent workflow automation solutions for integer businesses. The one-month instrumentality of ServiceNow, Inc. (NYSE:NOW) was -11.95%, and its shares mislaid 22.92% of their worth implicit the past 52 weeks. On November 26, 2025, ServiceNow, Inc. (NYSE:NOW) banal closed astatine $802.72 per share, with a marketplace capitalization of $167.087 billion.

Sands Capital Select Growth Strategy stated the pursuing regarding ServiceNow, Inc. (NYSE:NOW) successful its 3rd 4th 2025 capitalist letter:

"ServiceNow, Inc. (NYSE:NOW) is the starring supplier of endeavor workflow automation software, based connected marketplace share. Shares proceed to look concerns astir imaginable authorities spending cuts and the hazard that AI could disrupt exertion bundle providers. We spot nary grounds of weakening fundamentals and judge AI is enhancing, alternatively than pressuring, the business. Second-quarter results were strong, with subscription gross up 22.5 percent twelvemonth implicit twelvemonth and operating margins expanding 230 ground points. Both measures exceeded statement by 1 of the widest margins successful caller years. ServiceNow besides reported 50 percent year-over-year maturation successful its AI-enabled Pro Plus product, alongside rising adoption of different AI offerings, including NOW Assist, AI Control Tower, and Workflow Data Fabric.

ServiceNow, Inc. (NOW) Is Competing With The Rise Of AI, Says Jim Cramer

ServiceNow, Inc. (NYSE:NOW) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 106 hedge money portfolios held ServiceNow, Inc. (NYSE:NOW) astatine the extremity of the 2nd quarter, the aforesaid arsenic successful the erstwhile quarter. Third 4th subscription revenues of ServiceNow, Inc. (NYSE:NOW) were $3.299 billion, marking a 20.5% year-over-year maturation successful changeless currency. While we admit the imaginable of ServiceNow, Inc. (NYSE:NOW) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.