AI-driven investment model sells NOW and INTR stakes after 40% gain, citing stretched valuations and limited upside.
An AI-based investment model tracking over $200M in assets sold its entire stake in ServiceNow (NOW) and Inter & Co (INTR). The decision followed a 40% profit on ServiceNow but flagged concerns over its $122 twelve-month price target, which offered returns below cash levels.
ServiceNow reported Q2 subscription revenue growth of 25% year over year, beating guidance, with its Now Assist AI product surpassing $1 billion in annual contract value. However, GAAP profit declined as AI and hyperscaler costs compressed margins, and the stock trades at nearly 30x forward earnings amid 20% consensus growth.
The model’s exit reflects broader worries about long-term competition from AI-native startups, despite ServiceNow’s current growth momentum.