ServiceNow is actually a better buy than Microsoft

Microsoft stock ($MSFT) has almost quadrupled over the last five years, marking a phenomenal performance for a mega-cap company. The rally accelerated in 2023 following the company's acquisition of a 49% stake in ChatGPT's parent company, OpenAI, making Microsoft the world's largest AI company.

While Microsoft’s performance has been impressive, ServiceNow ($NOW), another mega-cap, has outperformed the tech giant. Over the last five years, the two stocks have delivered similar gains but NOW has edged ahead.

Like Microsoft, NOW is at the forefront of the AI revolution and is a well-managed business. But it’s forecasted to grow faster than Microsoft, suggesting that its outperformance is likely to continue. Let’s delve deeper.

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