The markets did not respond well to Alphabet (GOOG), Amazon (AMZN), Meta Platforms (META), or
Microsoft (MSFT) after they posted results last week. Especially selling on GOOG and MSFT
disappointing.
Considered bell-weather and the most cash-flow-rich companies, Google and YouTube face a slowdown as
advertisers cut spending. Google’s CEO said the company will significantly lower hiring compared to Q3.
It should do more than that. I may have to cut staff as advertising revenue deteriorates.
Google quietly acquired avatar startup Alter for ~ $100 million. The rich purchase price is another
reminder that Google’s research and development efforts are not paying off.
Microsoft warns about weak PC market and Azure growth. In this slowdown, this software firm is a
mature corporation, not a growth firm.
Technology investors should consider ServiceNow. After peaking at more than $700, the company could grow even faster
from here. In Q3, it earned $1.96 per share. Revenue increased 21.2% Y/Y to $1.83 billion. It reported a
renewal rate of 98%.
ServiceNow is a solid company. It works in a niche enterprise SaaS sector. After it posts EPS
beyond estimates, the strong renewal rate is a vote of customer confidence.
Add NOW stock to watch list. Consider a position if the stock falls after a post-earnings rebound.