Core Insights - Tanium partners with ServiceNow to enhance Autonomous IT capabilities across enterprises, focusing on efficiency, visibility, and resilience in IT infrastructure [1][2][3] Company Collaboration - The partnership aims to deliver real-time visibility, control, and resilience at scale, simplifying operations and strengthening security posture [2] - Shared use cases include agentic workflow capabilities, leveraging Tanium's real-time endpoint intelligence and ServiceNow AIOps for automated triage of alerts and scalable self-healing [2] Security Enhancements - ServiceNow utilizes Tanium to improve its own IT operations and security, enhancing real-time visibility and control across its Autonomous IT environment [3] - Tanium provides accurate endpoint data to ServiceNow's configuration management database (CMDB), optimizing the effectiveness of ServiceNow Security Operations [3] Product Features - Benefits of the partnership include zero-touch patching, ensuring compliance in deployment configurations and supporting real-time audits for unauthorized software [2]

Core Insights - RiverPark Large Growth Fund reported strong performance in Q3 2025, with the S&P 500 Total Return Index rising 8.12% and the Russell 1000 Growth Index returning 10.51% [1] - The fund's return for the quarter was 4.73%, with market leadership concentrated among a few mega-cap tech and consumer companies driven by strong AI innovation [1] - Sector performance was led by Information Technology, Consumer Discretionary, and Communication Services, while Energy and Utilities lagged [1] Company Insights: ServiceNow, Inc. (NYSE:NOW) - ServiceNow, Inc. experienced a one-month return of -11.23% and a 52-week loss of 18.23%, closing at $835.79 per share with a market capitalization of $173.971 billion on November 17, 2025 [2] - The company faced challenges as investors shifted towards higher beta AI hardware and semiconductor stocks, leading to relative underperformance despite solid results and guidance [3] - ServiceNow's Q3 subscription revenues reached $3.299 billion, reflecting a 20.5% year-over-year growth in constant currency [4]

Core Viewpoint - Patience in investing is highlighted as a valuable skill, particularly in the context of ServiceNow (NOW), which has experienced stock underperformance despite previously high valuations, suggesting potential investment opportunities for those willing to wait [1]. Group 1: Company Analysis - ServiceNow (NOW) has traded at high valuations in the past, but recent underperformance may present a buying opportunity for investors [1]. - The company is noted for its strong balance sheet and management team, which are critical factors for long-term growth potential [1]. Group 2: Investment Strategy - The investment approach focuses on identifying undervalued companies with secular growth, emphasizing the importance of patience and a disciplined valuation strategy [1]. - The strategy combines growth-oriented principles with strict valuation hurdles to enhance the margin of safety for investors [1].

Core Insights - Patience is highlighted as a valuable skill in investing, particularly in the context of ServiceNow (NOW), which has experienced recent stock underperformance despite previously high valuations [1] Group 1: Company Overview - ServiceNow (NOW) has traded at rich valuations in the past, leading to potential temptations for investors to chase quality stocks [1] - The recent underperformance of ServiceNow's stock has created opportunities for investors who exercise patience [1] Group 2: Analyst Perspective - Julian Lin, a financial analyst, focuses on identifying undervalued companies with secular growth potential, emphasizing the importance of strong balance sheets and management teams [1] - Lin leads an investing group that shares high-conviction stock picks with a high probability of delivering alpha relative to the S&P 500 [1] - The investment strategy combines growth-oriented principles with strict valuation hurdles to enhance the margin of safety [1]

Core Viewpoint - ServiceNow, Inc. is recognized as a fundamentally strong stock with a maintained "Buy" rating and a price target of $1,180.00, supported by strong financial performance and strategic advancements [1]. Financial Performance - In Q3 2025, ServiceNow reported a total revenue of $3.4 billion, reflecting a 22% year-over-year increase, which met market expectations [2]. - Subscription revenue grew by 21.5% year-over-year to $3.2 billion, contributing to the overall revenue growth [2]. - The company's current remaining performance obligations (cRPO) increased by 21% year-over-year to $11.35 billion [2]. Operational Efficiency - The non-GAAP operating margin was reported at 33.5%, exceeding guidance by 300 basis points, driven by top-line outperformance and operational efficiencies [3]. - The growth in subscription revenues was primarily due to increased purchases from both new and existing customers [3]. Customer Growth - In Q3 2025, ServiceNow had 103 transactions with over $1 million in net new annual contract value and ended the quarter with 553 customers having over $5 million in annual contract value, marking an 18% year-over-year growth [4]. - For Q4 2025, the company anticipates subscription revenues between $3,420 million and $3,430 million, with cRPO growth projected at 23% year-over-year [4].

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest in AI technologies now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2][3] Investment Opportunity - A specific company is positioned as a critical player in the AI energy sector, owning essential energy infrastructure assets that will benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend driven by tariffs [5][6] Financial Position - The company is noted for being debt-free and holding a significant cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened with debt [8][10] - It also has a substantial equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities in the AI sector [9][10] Market Trends - The article discusses the broader trends of AI infrastructure supercycles, the onshoring boom due to tariffs, and a surge in U.S. LNG exports, all of which the company is strategically aligned with [14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the importance of investing in AI-related companies [12] Conclusion - The company is presented as an undervalued investment opportunity with the potential for significant returns, as it is trading at less than seven times earnings while being tied to critical infrastructure and growth stories in AI and energy [10][11]

Market Overview - The US equity market experienced a rally in the third quarter of 2025, with the S&P 500 Index increasing by 8.12% [1] - Bonds also performed well, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% during the same period [1] Performance Analysis - The composite return for Aristotle Atlantic's Core Equity Strategy was 7.22% gross of fees and 7.10% net of fees, which underperformed the S&P 500 Index's 8.12% gain [1] - The underperformance was attributed to security selection within the strategy [1] Company Focus: ServiceNow, Inc. - ServiceNow, Inc. (NYSE:NOW) is highlighted as a key stock, offering intelligent workflow automation solutions [2] - The stock experienced a one-month return of -5.97% and a 52-week decline of 15.99%, closing at $849.69 per share with a market capitalization of $176.295 billion on November 13, 2025 [2] Strategic Decisions - The company sold its holdings in ServiceNow, Inc. and reduced its subsector overweight in Software due to perceived macroeconomic risks and shifts in software spending towards AI and LLM-leveraged solutions [3] - Despite acknowledging ServiceNow's potential, the company believes that certain AI stocks present greater upside potential with less downside risk [3] Financial Performance - ServiceNow's third-quarter subscription revenues reached $3.299 billion, reflecting a year-over-year growth of 20.5% in constant currency [3]

Group 1: CarMax, Inc. (NYSE: KMX) - Jim Cramer expressed a negative outlook on CarMax, stating that the business is performing poorly [1] - Barclays analyst John Babcock initiated coverage of CarMax with an Underweight rating and a price target of $28 [1] Group 2: ServiceNow, Inc. (NYSE: NOW) - ServiceNow reported better-than-expected third-quarter financial results, with earnings of $4.82 per share, surpassing the analyst estimate of $4.27 [2] - The company's quarterly revenue was $3.4 billion, exceeding the analyst consensus estimate of $3.35 billion [2] - ServiceNow announced a five-for-one stock split [2] - Jim Cramer recommended holding ServiceNow for long-term investments, citing strong fundamentals [1] Group 3: Conagra Brands, Inc. (NYSE: CAG) - Jim Cramer indicated he does not invest in companies with flat revenues over multiple years [2] - Conagra reported quarterly net sales of $2.63 billion, a decrease of 5.8% from the previous year [2] - The company's adjusted earnings per share were 39 cents, down 26.4% year-over-year [2]

Portfolio Overview - Bridgewater's total portfolio value increased from $24.8 billion in 2Q25 to $25.5 billion in 3Q25, a rise of 3%[1] - The number of positions expanded significantly to 1014, up from 585 in the previous quarter[1] - The share of the top 10 holdings decreased from 36.1% to 32.5%[1] Investment Strategy - Increased allocation to S&P 500 ETFs, with iShares S&P 500 ETF (IVV) becoming the largest holding at $2.71 billion, representing 10.6% of the portfolio[1] - Combined weight of S&P 500 ETFs reached approximately 17.3%, a notable increase from the previous quarter[1] - Emerging market ETF exposure was nearly eliminated, indicating a shift in strategy[1] Sector Adjustments - Significant reductions in holdings of major tech stocks, including Nvidia (down 65%), Alphabet (down 53%), and Microsoft (down 36%) to lock in profits[1] - Full exit from SPDR Gold Trust, reflecting a tactical profit-taking move after a strong price rally[1] - The portfolio remains biased towards information technology but has shifted to a more balanced allocation across sectors[1] Notable Transactions - Major increases in positions included Lam Research (+111%), Mastercard (+191%), and Workday (+132%) among others[1] - New positions initiated in Reddit and Robinhood, contributing to a more diversified portfolio with 493 new holdings[1] Risk Management - The strategy reflects a commitment to dynamic balance and risk-aware positioning in an uncertain economic environment[1] - The overall approach aims to enhance portfolio resilience by reducing concentration and broadening holdings[1]

Core Insights - The Accel 2025 Globalscape report highlights a significant divergence in performance between AI infrastructure and traditional enterprise software, with AI infrastructure companies experiencing substantial market cap growth [3][4][7] - Companies that are AI-native or focused on AI infrastructure are being rewarded in the market, while traditional SaaS companies are facing challenges [8][9] Market Performance - AI infrastructure companies collectively gained $4.9 trillion in market cap, with Nvidia leading at $1.6 trillion, followed by Alphabet at $1.2 trillion and IBM at $288 billion [4] - Traditional enterprise software companies like Salesforce and Adobe saw declines in market cap, with Salesforce losing $72 billion despite being profitable [7][24] Revenue Efficiency - AI-native companies are achieving revenue per employee metrics that are 6-12 times better than traditional SaaS, indicating a complete reimagining of operational efficiency [10][13] - Examples include Cursor with $6.1 million ARR per FTE and Lovable with $3.4 million ARR per FTE, compared to traditional SaaS companies averaging $0.46-0.54 million ARR per FTE [15] Adoption Trends - There is unprecedented velocity in bottoms-up adoption of AI technologies, driven by viral growth through developer communities and social media [14][16] - Companies that can achieve viral adoption are positioned to build significant revenue before needing a traditional sales team [16] Gross Margins - Emerging AI application leaders are currently facing gross margins between 7-40%, significantly lower than the 76% average for the Globalscape Public Cloud Index [18][19] - Despite current margin challenges, the expectation is that costs will decrease, leading to improved unit economics as companies scale [20] Venture Capital Trends - Venture capital funding for Cloud and AI reached an estimated $184 billion in 2025, with a significant portion allocated to AI model funding [29][30] - The US leads in model funding, while Europe and Israel are competitive in application funding [30] Compute Infrastructure - The projected capital expenditure for AI infrastructure is $4.1 trillion by 2030, with a significant power shortfall anticipated in the US [32] - Hyperscalers are expected to finance the necessary buildout through their operating cash flow [32] AI Budget Increases - 45% of businesses plan to increase their AI budgets by 10-25% over the next year, indicating strong interest in agentic AI [35][36] IPO Market Dynamics - The tech IPO market is reopening, with eight software/AI IPOs in 2025, but traditional SaaS companies without an AI narrative are struggling to attract attention [43][47] - Successful IPOs are characterized by AI-driven efficiency, clear paths to profitability, and demonstrated enterprise traction [49][50] Unicorn Formation - A record number of AI unicorns are being formed quickly, with 65% of breakout AI companies being 0-3 years old [51][53] - Companies are achieving significant valuations in a fraction of the time compared to previous eras, with some reaching $100 million ARR in as little as 8 months [53][55]