This AI Company's CEO Says Its Stock Is a Once-in-a-Generation Opportunity, and He's Putting $3 Million of His Own Money Into It

4 weeks ago 24

Adam Levy, The Motley Fool

Wed, February 25, 2026 astatine 5:05 AM CST 5 min read

There are a batch of reasons an enforcement mightiness merchantability shares successful their ain company; there's lone 1 crushed they'd bargain the stock. Insider buying tin beryllium a beardown awesome of management's assurance that a company's banal is undervalued by the marketplace and should punctual investors to instrumentality a person look.

That's wherefore Bill McDermott's program to acquisition $3 cardinal of ServiceNow (NYSE: NOW) is worthy noting. A caller SEC filing shows McDermott's plans to bargain those shares connected Feb. 27, the earliest day imaginable helium tin bargain caller shares without having to instrumentality immoderate profits connected erstwhile income of the banal to shareholders. Additionally, a fistful of different executives cancelled each of their upcoming automated banal sales. McDermott said, "This is simply a once-in-a-generation infinitesimal with ServiceNow."

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The quality of McDermott's acquisition program comes aft ServiceNow's banal terms declined considerably astatine the commencement of the year, on with galore different bundle stocks. Here's wherefore McDermott mightiness beryllium right.

A idiosyncratic holding thenar retired and a glowing graphic of a quality caput and instrumentality caput interacting utilizing AI.

ServiceNow started arsenic a bundle bundle for IT work management, but it present sports an ever-expanding portfolio of products and services. Last year, it announced plans to get cybersecurity companies Armis and Veza. However, galore analysts feared ServiceNow overpaid for the additions to its portfolio, pushing its banal worth lower.

McDermott told analysts that ServiceNow is done making large acquisitions for now. "You tin springiness america backmost the marketplace cap," helium joked connected the company's fourth-quarter net call.

But analysts person present turned their attraction to however generative artificial quality (AI) could disrupt the full bundle sector. Releases from Anthropic, including Claude Cowork and a caller ineligible plug-in for the service, person shown the imaginable for the starring AI probe labs to displace galore of the entrenched bundle packages enterprises presently wage for. There are worries that ServiceNow and different SaaS stocks won't turn net per stock rather arsenic rapidly arsenic anticipated and could spot acold less customers successful the future.

But McDermott is positioning ServiceNow to enactment AI first. He was speedy to integrate generative AI into ServiceNow's existing software. Its Now Assist AI suite reached $600 cardinal successful yearly declaration worth astatine the extremity of 2025. That should surpass $1 cardinal earlier the extremity of 2026.

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