Jim Cramer Highlights ServiceNow’s Buyback Plans and Says It Delivered a “Pretty Darn Good Quarter”

ServiceNow, Inc. (NYSE:NOW) is one of the stocks that Jim Cramer shared takes on, along with navigating market shortages. Cramer highlighted the company’s earnings and buyback, as he commented:

For a long time now, the enterprise software cohort has just been a house of pain because Wall Street’s terrified they’re going to be steamrolled by generative AI platforms that are very good at writing code. But we really haven’t seen all that much impact in the actual numbers for these companies. Instead, the enterprise stocks, they’ve been pummeled by multiple compression. The earnings themselves have been fine, though.

Just take a look at ServiceNow. Here’s a stock that peaked exactly one year ago. It’s now down over 45% since then. But tonight, ServiceNow reported what I thought was a pretty darn good quarter. And even better, they announced a $5 billion buyback, including a $2 billion accelerated repurchase. Starts right away. Clearly, management thinks the stock is cheap, but will the marketplace, which has become a very cruel taskmaster for software as a service, enterprise software, agree?

ServiceNow, Inc. (NYSE:NOW) provides a cloud platform that supports digital workflows through AI, automation, low-code tools, analytics, and a suite of IT, security, customer service, and employee experience products.

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