Jim Cramer Discusses ServiceNow (NOW)’s Business

We recently published 11 Stocks on Jim Cramer’s Radar.  ServiceNow, Inc. (NYSE:NOW) is one of the stocks on Jim Cramer radar.

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:

Jim Cramer Discusses ServiceNow (NOW)'s Business

“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.”

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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