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Here’s Why You Should Consider Investing in ServiceNow (NOW)

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  • NOW
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RiverPark Funds, an investment management firm, published its “RiverPark Large Growth Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. The RiverPark Large Growth Fund (the “Fund”) returned -3.23% for the third quarter of 2021, while its benchmarks, the S&P 500 Total Return Index (“S&P”) advanced 0.58%, the Russell 1000 Growth Total Return Index (“RLG”) returned 1.16%, while the Morningstar Large Growth Category returned -0.07%. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

RiverPark Large Growth Fund, in its Q3 2021 investor letter, mentioned ServiceNow, Inc. (NYSE: NOW) and discussed its stance on the firm. ServiceNow, Inc. is a Santa Clara, California-based software company with a $133.8 billion market capitalization. NOW delivered a 22.24% return since the beginning of the year, while its 12-month returns are up by 24.69%. The stock closed at $672.82 per share on November 29, 2021.

Here is what RiverPark Large Growth Fund has to say about ServiceNow, Inc. in its Q3 2021 investor letter:

"NOW shares were our final top contributor for 3Q on a strong beat and raise quarter. The company reported 31% subscription revenue growth, 30% subscription billings growth, and a 19% non-GAAP FCF margin for the quarter, while raising full year subscription revenue and billings guidance to 29% and 31%, respectively, as well as raising non-GAAP FCF margin by 100 basis points to 31%.

ServiceNow is a best-of-breed provider of both IT Service Management (ITSM) and IT Operations Management (ITOM) solutions to enterprise customers. The company’s products serve mainly its clients’ internal employee base with a current focus on automating the process of IT deployment, configuration and service and management of IT assets across an organization. Both its ITSM and ITOM solutions are delivered as a software-as-a-service (SaaS), and are each leading solutions in growing markets, driven by the secular trend of enterprises transitioning all aspects of their business and operations to the cloud. As the company maintains and adds customers, upsells them, and expands into adjacent markets, we believe NOW should sustain a strong long-term revenue and FCF growth trajectory."

salesforce, software, office, meeting
salesforce, software, office, meeting

Photo by Austin Distel on Unsplash

Based on our calculations, ServiceNow, Inc. (NYSE: NOW) ranks 28th in our list of the 30 Most Popular Stocks Among Hedge Funds. NOW was in 87 hedge fund portfolios at the end of the third quarter of 2021, compared to 91 funds in the previous quarter. ServiceNow, Inc. (NYSE: NOW) delivered a 4.53% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.