Cloud computing company ServiceNow could be the next tech stalwart, according to MoffettNathanson. Analyst Sterling Auty upgraded shares of ServiceNow to outperform from market perform, saying the stock could soar 50%, after a better-than-expected earnings report bolstered his outlook on the company. "ServiceNow's September results are a welcome change after the disappointing results from Microsoft (MSFT, MP, Auty) and we expect them to help drive broader software higher," Auty wrote in a Thursday note titled "Megacap Investors Have New Home." "We believe management did a very good job over the last quarter adjusting the go-to-market execution in terms of pipeline management, and that delivered better than expected results for bookings and a good outlook," Auty added. Shares of ServiceNow jumped 14.6% after the software company topped earnings expectations for its third quarter, though it slightly missed revenue forecasts, according to consensus estimates on FactSet. The approved of the results as proof that ServiceNow is navigating through the impact from a stronger dollar and rising interest rates. The stock is down roughly 44% this year. The analyst expects the positive outlook for the rest of this year and next will help ServiceNow outperform, and gain share against other mega-cap tech companies. "Over the last 5-7 years we have watched investors rotate focus among a small group of megacap ($50B+ market cap) software stocks (Microsoft, Salesforce.com [CRM, Not Rated], Adobe [ADBE, MP, Auty] Intuit [INTU, OP, Ader], and ServiceNow)," Auty wrote. "The disappointing results and outlook from Microsoft combined with the positive results and tone from ServiceNow, we believe, will position ServiceNow to come into favor and benefit from rotation," Auty added. The analyst maintained his $549 price target on ServiceNow, implying roughly 49.8% upside from Wednesday's closing price of $366.41. —CNBC's Michael Bloom contributed to this report.