Wessel Vleut @WesselV: "Performance: YTD: + 5,3% 6M:..."

Netherlands

Performance: YTD: + 5,3% 6M: + 20,5% 1Y: + 39,7% Portfolio Update: Why I Added Adobe & ServiceNow Recently, a lot of investors are worried that AI will replace large software companies. That fear has pushed down the prices of several high-quality businesses, even though their fundamentals remain strong. I’ve started building positions in Adobe (ADBE) and ServiceNow (NOW). Not because I think they’re “no-brainers”, but because the current valuations look much more attractive than they have been in years relative to their quality. ServiceNow ($NOW): A Very Sticky Business ServiceNow is a core workflow platform for large companies. It’s used for IT, HR and internal processes, and once a company is deeply integrated, switching away is difficult. You can see that in the numbers: their customer renewal rate is around 98–99%. Historically, the stock trades at very high multiples because of its strong growth and predictability. Over the last five years, the average P/E was around 300x. Today it’s closer to ~80x. That’s still not cheap in absolute terms, but it is a big drop compared to its own history. From a business quality perspective, margins remain very strong, with ~79% gross margins, which shows how scalable and efficient the model is. Adobe ($ADBE (Adobe Systems Inc)): A High-Quality Business at a Much Lower Price With Adobe, the main fear is that AI tools will reduce the need for professional software. I’m not convinced that changes the full professional workflow overnight. Professionals still need editing, version control, collaboration and brand consistency, and Adobe is integrating AI into its existing products rather than ignoring it. From a valuation perspective, Adobe is trading much cheaper than usual: Current P/E: ~18–20x 5-year average P/E: ~40x So the market is currently valuing the same company at roughly half the multiple it used to. Financially, Adobe remains extremely strong, with ~89% gross margins and ~30% net margins, which is rare even among software companies. Why I’m Adding Them Now Both companies have very strong balance sheets, high margins and sticky customers. The stocks have been under pressure mainly because of uncertainty around AI, not because the core businesses are breaking down. That doesn’t mean there are no risks. But at these valuations, the risk/reward looks more balanced than it has in a long time. For that reason, I’ve added both Adobe and ServiceNow to my portfolio with a long-term view and I’ll keep following how their fundamentals and AI strategies develop. $FIG (Figma Inc) $SPX500 $QQQ (Invesco QQQ) $ADBE $ZETA.US (Zeta Global Holdings Corp) $NSDQ100

Not investment advice. The author may have financial interests in the mentioned instruments.