Jim Cramer Discusses Hidden Factor For ServiceNow (NOW) Stock

We have recently published Jim Cramer Discussed AI Circular Deals, Top Quantum Plays & These 22 Stocks. ServiceNow Inc. (NYSE:NOW) is one of the stocks discussed by Jim Cramer.

ServiceNow Inc. (NYSE:NOW), like other enterprise software products and services providers, has struggled in the stock market during today’s AI-driven investing era. Its shares are down by 52% over the past year and by 38% year-to-date. A major setback for ServiceNow Inc. (NYSE:NOW)’s stock occurred on April 23rd when it closed 17.8% lower. On the 22nd, the firm shared the impact of the ongoing conflict in the Middle East on its ability to close deals. TD Cowen discussed ServiceNow Inc. (NYSE:NOW)’s shares on April 16th as it cut the share price target to $140 from $185 and kept a Buy rating on the stock. The financial firm cited its channel checks as part of the coverage to explain that AI adoption and platform usage were demonstrating healthy metrics. Deutsche Bank also discussed ServiceNow Inc. (NYSE:NOW) on the 16th as it reduced the price target to. $135 from $180 and kept a Buy rating. Cramer discussed the role federal business plays for ServiceNow Inc. (NYSE:NOW) and its peer Salesforce:

“Let’s take Marc Benioff and his fallen star of Salesforce. He wanted defense business, ServiceNow, federal business. Federal business is huge for these kinds of companies. And you need federal business to be able to make the great mosaic.”

While we acknowledge the risk and potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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