ServiceNow Outshines Palantir as the Smarter AI Software Stock

1 min read
Source: The Motley Fool
TL;DR

The Motley Fool weighs Palantir vs. ServiceNow as AI software plays, ultimately siding with ServiceNow as the better stock due to a cheaper valuation and solid growth. Palantir posted strong Q1 results with 85% revenue growth to $1.6 billion and total contract value of $2.4 billion, while ServiceNow reported 24% revenue growth in Q2 to roughly $4 billion and cRPO of $13.2 billion, raising full-year guidance on AI-driven expansion. With Palantir trading around a 140x earnings multiple versus ServiceNow around 60x, the article argues that ServiceNow offers more attractive upside and lower risk at current prices.

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