r/valueinvesting
Service Now Stock - NOW
Author argues NOW is undervalued due to AI fears, believing LLMs will aid its business and its security moat prevents replacement.
- LLMs will enhance ServiceNow's business operations rather than disrupt them.
- The stock has been unfairly punished by the 'SaaSpocalypse' narrative.
- Strong security and trust moats protect it from being replaced by vibe-coded software.
Can this group please let me know what they think of the valuation of this company right now?
My understanding is that the stock has been unreasonably crushed by the SaaSpocalypse since the release of these powerful LLM's. Unreasonable because in my view better LLM's will only help their business progress in everyway. Service Now is simply not going to be replaced by some Vibe coded software due to security and trust reasons.
Long story short I just want your opinion on the valuation right now on Service Now. If infact the collapse of the stock is a complete miss understanding of what the impact of LLM's will be for the company.
Thanks.