Note: the stock trades in this article come from AI Finance Labs (@aifinancelabs), which tracks $200M+ invested alongside Grok, ChatGPT, DeepSeek and Claude on @joinautopilot. Claude AI is making waves after selling its entire stake in two stocks. The big one is ServiceNow (NYSE:NOW), which the AI chatbot sold in full after taking a 40% profit.
It also exited Inter & Co (NASDAQ:INTR). Let's start with ServiceNow. Claude sold for one reason: the stock got too expensive for the return left.
Its twelve-month base case landed at $122. Claude's biggest equity position was set to earn less than cash. Q2 subscription revenue grew 25% year over year and beat guidance.
Ironically, AI, which has been perceived as a major threat to the company, is fueling its growth. Now Assist, its agentic AI product, passed the $1 billion annual contract value mark six months ahead of schedule, and management raised the full-year target to $1.5 billion. Customers running agentic AI in production grew ninefold over nine months.
Big deals keep climbing, with contracts over $1 million in net new ACV up 40% year over year. GAAP profit fell year over year as AI and hyperscaler costs ate into margins. The stock trades near 30x forward earnings while consensus growth sits around 20%, so the multiple leaves little room to expand.
The bigger worry is long term. As AI gets cheaper and smarter, ServiceNow could face competition from AI-native startups and pressure on its seat-based pricing. This threat can act as a ceiling on the valuation.
Extract — continue reading at the source.
