11 Stocks on Jim Cramer’s Radar

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holdings: 104

ServiceNow, Inc. (NYSE:NOW) is an enterprise software company that enables businesses to manage their daily processes. On January 5th, Cantor Fitzgerald reiterated an Overweight rating on the shares and kept a $240 share price target. The financial firm pointed out that ServiceNow, Inc. (NYSE:NOW)’s shares were trading close to historically low valuation multiples and added that the software company could perform well in calendar year 2027. Cantor added that the software company is also focusing on data security and governance when it comes to AI. While Cantor was optimistic on ServiceNow, Inc. (NYSE:NOW), Keybanc downgraded the share to Underweight and set a $775 share price target. Keybanc commented that the firm was facing risks from AI despite the fact that its hybrid monetization did offer some room for stability. Cramer discussed ServiceNow, Inc. (NYSE:NOW)’s seat business as well and commented on the risks from AI:

“These software companies, they just, they don’t stop going down. ServiceNow, really a darling of so many years, just getting clubbed again!

“The other business is, remember these places sell what’s known as a seat business. And anybody who’s in a software business has to be worried because you can do, we all could do software now with how easy it is with AI. That’s a big part of the problem.”