Jim Cramer Discusses ServiceNow (NOW) & OpenAI Deal

We recently published 14 Stocks Jim Cramer Talked About.  ServiceNow, Inc. (NYSE:NOW) is one of the stocks Jim Cramer talked about.

Enterprise workflow management software provider ServiceNow, Inc. (NYSE:NOW)’s shares have struggled amidst the broader software sector’s woes, as they are down by 43.6% over the past year and by 13.9% year-to-date. Baird reduced the share price target to $190 from $250 in January and kept an Outperform rating on the stock. RBC Capital kept an Outperform rating and a $195 share price target after the software company announced its partnership with OpenAI. The financial firm commented that the deal reflected the company’s penetration and presence in the enterprise workflow market. Citi also shared optimism for ServiceNow, Inc. (NYSE:NOW)’s sales pipeline as it set a $250.60 share price target. The firm had announced its partnership with OpenAI in January. Through the deal, OpenAI’s frontier model capabilities will be available in ServiceNow, Inc. (NYSE:NOW)’s platform to its customers. However, Cramer wondered whether the deal would benefit OpenAI more by allowing the AI company to gain a foothold in the business-to-business market:

Copyright: melpomen / 123RF Stock Photo

“Right, I mean look, it makes OpenAI look more business-to-business. Now, Ben Reitzes from Melius would argue, look this is just another thing that looks good for ServiceNow, is actually good for OpenAI.”

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Disclosure: None. This article is originally published at Insider Monkey.