Saul has written that one of the steps he takes in selecting stocks to invest in is by reading write-ups from people he trusts. Has anyone he trusts done such a write-up on ServiceNow, Inc. They have increasing revenues and I’d like to read up/learn about them.
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Hi, the general rule around here is when you start a thread to provide some insight along with your question. I suggest doing a research before posting.
Back when a source I like started following this company I looked at it and passed. It took me about 30 seconds to decide because the first thing I did was look at the revenue growth percentages over the last couple of years. This is just a quick copy and paste that I have not formatted. It shows revenue growth from the most recent quarter and then going back in time quarter by quarter.
Revenue growth: 28.4% 32.6% 33.0% 31.6% 32.1%
These numbers aren’t bad, compared to most of the other companies we research more intensely, there’s just not enough to be interesting. Not only that but they don’t show acceleration and the most recent quarter actually shows the opposite.
Hopefully this quick look saves you the hours/days of research time you would’ve spent in company research.
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Sorry for the early send. Important correction:
- These numbers aren’t bad, BUT compared to most…
Thanks. I was just trying to start at the same place Saul starts by reading a trusted write-up as my initial research.
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Revenue growth: 28.4% 32.6% 33.0% 31.6% 32.1%
The good side of this thread is that it made me look at the account in which I held some NOW shares, bought in August of last year and just sold today at $500 for a double.
Not bad for a “slow” revenue grower. I don’t see NOW doubling in a year from here, though. For lots of people, ServiceNow would be a fine part of their portfolio. It’s more stable with less downside than many of the stocks discussed here, but as Rafe says, it’s also got less upside than all of the stocks discussed here.
Which maybe is a good reminder that our portfolios here are not “buy and forget.” The law of large numbers takes its toll on all great growth stocks (Amazon, anyone?), and so we need to understand our holdings well and be ready to move on when it’s time. This type of investing is not for everyone.
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JoRoSki,
This link is available on the banner to the right of posts: https://discussion.fool.com/how-i-pick-a-company-to-invest-in-33…
Bert’s service is called Ticker Target. Stock Advisor & Rule Breakers are the most popular TMF services. These are all paid subscriptions so no blabbing on stock picks, but
I’m going to venture any more replies to this thread are off-topic unless someone wants to make a compelling argument on NOW.
My $0.02: Market cap is in the neighborhood of $95B, growth rates slipping from 30’s to high 20’s and decelerating, not a bad company to invest in but it’s not going to cut it in a concentrated portfolio compared to ZM, CRWD, DDOG, FSLY, etc.
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Which maybe is a good reminder that our portfolios here are not “buy and forget.” The law of large numbers takes its toll on all great growth stocks (Amazon, anyone?), and so we need to understand our holdings well and be ready to move on when it’s time. This type of investing is not for everyone.
Smorgasbord- Thank you for the reminder. These are words of wisdom and perhaps should be copied down framed and hung in a prominent location as a reminder to stay up to date and alert…
Here is another “The great error of our nature is not to know where to stop and thereby to lose all we have gained by an insatiable pursuit after more.”—Edmund Burke
cheers
arnie
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I don’t know about reading a source, but MotleyFool Live has an 8 part series talking about NOW in detail.
Mike
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Thank you Mike
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SERVICENOW raised to new Wall. St-high price-target of $900 (from $660) by Needham, ahead of Wednesday’s earnings: "We remain positive on shares of ServiceNow into Wednesday’s earnings, where we believe management embedded conservative assumptions with respect to its CY24 Subscription Revenue target of $10.4 Billion (provided at the May 2023 Financial Analyst Day).
While GenAI was on ServiceNow’s product roadmap, we note that at the time of FAD23 the company did not have its Pro+ SKUs on the market; had not discovered SKU pricing; and did not have a sense for pipeline build or customer interest.
Furthermore, given ServiceNow’s Subscription Revenue model and outperformance through CY23, we expect the company can outperform the initial $10.4 Billion target (consensus $10.5 Billion). We continue to highlight ServiceNow as a durable 20%-plus grower, driven by the company’s Subscription-based Revenue; platform offering; and emerging GenAI monetization model."
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