11 Stocks Jim Cramer Discussed As He Said Apple’s CEO Is A “Pawn”

5. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders In Q2 2025: 106

ServiceNow, Inc. (NYSE:NOW) is one of several embattled software-as-a-service stocks that have floundered as investors believe AI offers businesses the ability to self-code software programs. Its shares have lost 13.5% year-to-date. However, more recently, the stock jumped by 7.4% in late August after its second-quarter revenue and earnings beat analyst estimates. Notably, ServiceNow, Inc. (NYSE:NOW) also outlined that its subscription revenue jumped by 22.5% in the quarter. However, Cramer warned that he was hearing talk about the firm’s multiple being too high. While ServiceNow, Inc. (NYSE:NOW) trades at a P/E ratio of 114, other software firms such as Salesforce and Workday have lower multiples. Here is what Cramer said:

“By the way, I am hearing, the next one that, Will McDermot and ServiceNow, people are worried that that’s got too high a multiple. I’m not hearing anybody miss it. But that’s one thing that I’m certain that I’m hearing.”

Here are Cramer’s previous comments about ServiceNow, Inc. (NYSE:NOW) that it could compute government data, such as labor statistics:

“You gotta outsource this. You’ve got to give this to ServiceNow. It cannot be done by the government. . .You can’t have the revisions like we had in employment and think there’s any substance. . .

“I think that it would be aplomb to handle that business. I think that it would be great bragging rights. I also think a guy like Bill McDermott, great American, he’d just say listen, we’ll take it on. We’ll do at cost. McDermott would do that, ServiceNow, I mean. ServiceNow by the way being hurt by this Melius thesis, Ben Reitzes thesis, that AI is eating software. Which the judge talked about extensively yesterday in a very good roundtable. Very good roundtable.”