Here’s Why ServiceNow (NOW) Isn’t A Good Investment According to This Fund

14 hours ago 2

Soumya Eswaran

Fri, July 3, 2026 astatine 12:41 PM CDT 3 min read

Brown Advisory, an concern absorption company, released its "Brown Large-Cap Growth Strategy" for the first-quarter 2026 capitalist letter. A transcript of the missive is disposable to download here. The Brown Advisory Large-Cap Growth Strategy experienced a diminution successful the archetypal 4th of 2026, modestly trailing the Russell 1000 Growth Index. Despite antagonistic implicit returns amidst volatility, comparative show improved importantly arsenic the 4th progressed. Initial pressures stemmed from weaknesses successful the bundle sector, affected by concerns implicit AI disrupting accepted models. Conversely, sectors similar Industrials and Consumer Discretionary positively contributed to performance, portion Information Technology and Health Care were the largest detractors. The strategy's quality to outperform successful a down marketplace indicates the prime of holdings. As marketplace enactment broadens, the firm's absorption remains connected maintaining a diversified portfolio of high-quality maturation companies, aiming for beardown semipermanent results. Please reappraisal the Strategy's apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, Brown Advisory Large-Cap Growth Strategy highlighted ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) is simply a cloud-based bundle institution that provides a level for automating and managing integer workflows. On July 2, 2026, ServiceNow, Inc. (NYSE:NOW) closed astatine $106.32 per share. One-month instrumentality of ServiceNow, Inc. (NYSE:NOW) was -5.45%, and its shares mislaid 49.11% implicit the past 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a marketplace capitalization of $109.65 billion.

Brown Advisory Large-Cap Growth Strategy stated the pursuing regarding ServiceNow, Inc. (NYSE:NOW) successful its Q1 2026 capitalist letter:

"We exited ServiceNow, Inc. (NYSE:NOW) arsenic portion of a broader effort to refine our positioning wrong software, wherever evolving competitory dynamics and the gait of AI innovation person accrued uncertainty crossed the sector. While the institution continues to execute well, we chose to trim vulnerability to areas wherever AI-driven alteration whitethorn measurement connected semipermanent maturation and capitalist sentiment. We redeployed superior into Palo Alto Networks, which we judge is amended positioned implicit the agelong term."

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

ServiceNow, Inc. (NYSE:NOW) ranks 25 connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 108 hedge money portfolios held ServiceNow, Inc. (NYSE:NOW) astatine the extremity of the archetypal quarter, compared to 118 successful the erstwhile quarter. In the archetypal 4th of 2026, ServiceNow, Inc.'s (NYSE:NOW) subscription revenues increased 19% year-over-year to $3.67 billion. While we admit the hazard and imaginable of ServiceNow, Inc. (NYSE:NOW) arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and doing truthful wrong a shorter clip frame. If you are looking for an AI banal that is much promising than ServiceNow, Inc. (NYSE:NOW) and that has 10,000% upside potential, cheque retired our study astir this cheapest AI stock.

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