ServiceNow represents an oversold AI opportunity
The guest argued that ServiceNow has been unfairly beaten up by AI-related market volatility, presenting a highly attractive valuation for a company with strong backlogs and organic growth.
The argument
Wellum stated that his firm took a controversial position in ServiceNow after it fell to roughly half of its historical valuation. He argued that the business is highly resilient, continues to grow rapidly, and will successfully integrate AI technologies to drive future demand.
The thesis, stress-tested
✓ What validates it
- ✓Acceleration of order backlogs in upcoming quarterly reports
- ✓Successful monetization of AI integrations (e.g., Claude) within their platform
▸ Risks discussed
- ▸Short-term downside momentum as the stock remains 'underwater' for the guest
- ▸Intense competition in the enterprise AI software integration space
Hear it yourself
"Now we could find a company that's super cheap in that sector that can maybe buck the trend. That's a little bit different. But overall, we wouldn't be spending much time in that sector for those longer term reasons."
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