Jim Cramer on ServiceNow: “I Also Like ServiceNow (NOW)”

We recently published a list of Jim Cramer Had These 21 Stocks on His Radar. In this article, we are going to take a look at where ServiceNow, Inc. (NYSE:NOW) stands against other stocks that Jim Cramer discusses.

When Cramer was asked about ServiceNow, Inc. (NYSE:NOW), he remarked:

“I also like ServiceNow. I love what Bill McDermott’s doing. They’re actually going at each other right now, or at least Bill McDermott’s declared war, so to speak on Salesforce. These are two really fine companies, and over the long term, they’ve both been sensational.”

A team of software engineers at desks working on code for a cutting-edge cloud computing solution.

ServiceNow (NYSE:NOW) offers a cloud-based platform that supports digital workflows through AI, automation, and low-code tools, providing solutions for IT services, operations, customer service, risk management, and enterprise functions like HR and legal. Ithaka Group stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its Q1 2025 investor letter:

“Founded in 2004, ServiceNow, Inc. (NYSE:NOW) has become the leading provider of cloud-based software solutions that defi ne, structure, manage and automate workflow services for global enterprises. ServiceNow pioneered the use of the cloud to deliver IT service management (“ITSM”) applications. These applications allow users to manage incidents and to plan new IT projects, provision clouds, manage application performance and build applications themselves. The company has since expanded beyond the ITSM market to provide workflow solutions for IT operations management, customer support, human resources, security operations and other enterprise departments where a patchwork of semi-automated processes have been used with varying success in the past. ServiceNow’s stock fell during the quarter, driven by the announcement that its much anticipated AI Agents offering is going to be offered as a consumption-based model, vs the expected seat-based model. This change will make revenue recognition fall further into the future, as clients can take their time adopting (and therefore paying) for the new product.”

Overall, NOW ranks 5th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of NOW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NOW and that has 100x upside potential, check out our report about this cheapest AI stock.

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