📈 ServiceNow’s $3B AI Bet

Good morning.

⚡ The Fast Five → Mantle Ridge build $1B stake in Cognizant, Intel deal now seems unlikely, Apple breaks tradition with new releases, Universal Music Group rises on revenue beat, ServiceNow eyes AI acquisition

🔎 Market Trends → Wall St Week Ahead Rocky US stock market faces inflation data test; US Futures Fall to Start the Week

And now…

⏱️ Your 5-minute briefing for Monday, March 10, 2025:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Markets in Review

Markets Rebound, but Weekly Losses Reflect Trade Uncertainty

The Nasdaq gained 0.7% to 18,196.2, while the S&P 500 rose 0.6% to 5,770.2, and the Dow climbed 0.5% to 42,801.7 on Friday. Utilities led gains, while consumer staples lagged. Despite the rally, all three indexes posted sharp weekly declines, with the Nasdaq down 3.5%, the S&P 500 off 3.1%, and the Dow losing 2.4%.

The Big Picture:

Uncertainty surrounding Trump’s evolving trade policies weighed on markets this week. Tariffs on Canada, Mexico, and China remain fluid, and the White House is now eyeing Canadian lumber and dairy products. Meanwhile, the Federal Reserve signaled patience, with Chair Jerome Powell emphasizing the need for policy clarity before adjusting interest rates.

Despite tariff turbulence, the US labor market remains solid, with 151,000 jobs added in February—just shy of expectations. The unemployment rate ticked up to 4.1%, a modest increase but still near historic lows.

The 10-year Treasury yield rose 2.5 basis points to 4.31%, while the 2-year yield climbed 3.9 basis points to 4%. WTI crude oil edged up 1% to $67.04 per barrel, shrugging off global trade concerns.

Market Movers:

• Broadcom (AVGO) surged 8.6%, topping the S&P 500, after delivering a strong Q1 beat and raising its Q2 revenue outlook.

• Walgreens (WBA) jumped 7.5%, as the drugstore chain agreed to a $23.7 billion buyout by Sycamore Partners.

• Hewlett Packard Enterprise (HPE) sank 12%, after issuing a downbeat full-year forecast and announcing job cuts.

• Costco (COST) fell 6.1%, as quarterly earnings missed expectations, raising concerns about consumer spending trends.

What They’re Saying:

"The US economy remains in a good place, but trade uncertainty and slowing job growth could weigh on hiring and investment," TD Economics wrote in a client note.

WHAT WE’RE WATCHING
Events

• There are no events scheduled for today.

Earnings Reports

• Today: Oracle, BioNTech, Vail Resorts, Asana Mission Produce, Franco-Nevada, Uranium Energy Corp.

• Tomorrow: Dick’s Sporting Goods, Kohl’s, Casey’s General Stores, First Watch, Wheels Up, United Natural Foods, Ciena, MINISO Group

MARKET BRIEF
Leading News

ServiceNow’s $3 Billion AI Bet: A Quiet Giant Steps Up

Why it matters:

ServiceNow (NYSE:NOW) is nearing a $3 billion deal for AI firm Moveworks—a bold move that could redefine its future, if it doesn’t stumble.

Zoom Out:

Picture this: ServiceNow, the backstage maestro of corporate workflows, is close to snagging Moveworks, a California startup that’s turned AI into a helpdesk wizard for outfits like Unilever (LON:ULVR) and Broadcom (NASDAQ:AVGO). Moveworks’ bots don’t just fix IT tickets—they’re the grease in the gears of modern work. The price? A hefty $3 billion, up from $2.1 billion in 2021. Talks could still falter, but the intent’s clear.

ServiceNow’s Bill McDermott isn’t chasing headlines—he’s chasing dominance. The company’s already weaving generative AI into its platform, and Moveworks could be the missing thread. For savvy investors, this isn’t hype—it’s a glimpse at where the smart money’s headed.

Key Insights:

• Growth Fuel: Moveworks fits ServiceNow’s playbook—last quarter’s $2.7 billion in subscription revenue grew 23%. This could accelerate that.

• AI Fever: The $3 billion valuation isn’t cheap, but it mirrors the market’s obsession with AI—think less bubble, more foundation.

• Customer Stickiness: Moveworks’ client list—think GitHub, Unilever—hints at retention power, a goldmine for ServiceNow’s recurring revenue model.

Market Pulse:

“Efficiency isn’t sexy until it’s profit,” notes Alkeon Capital’s Abhi Arun, a Moveworks investor. He’s not wrong—boring can be brilliant.

Bull’s Take:

ServiceNow’s not promising the moon, but this deal could quietly compound gains for years. If it closes, NOW’s dip (-1.90%) might be your cue—patience pays.

Headlines

• Activist investor Mantle Ridge builds a more than $1 billion stake in Cognizant (link)

• An Intel deal now seems less likely. These clues may hold the key to its future. (link)

• Apple Breaks Tradition With A Flood Of New Releases; Explores Smart Glasses (link)

• Why Strategy Stock Soared This Week (link)

• Treasury Secretary delivers startling message on U.S. economy (link)

• Universal Music Group rises after reporting subscription revenue growth beat (link)

CRYPTO
Fear & Greed

Headlines

• Sunday Blues for Bitcoin as It Tumbles Back to $80K (link)

• At crypto summit, Trump vows to sign stablecoin legislation before August and end crypto debanking (link)

• XRP, ADA, SOL Fall Deeper Than Bitcoin as White House Crypto Summit Fails to Wow Traders (link)

DAILY SHARE
On the Socials