Jim Cramer on ServiceNow: “It’s Expensive, That’s the Problem”

ServiceNow, Inc. (NYSE:NOW) was among thestocks Jim Cramer discussed during Mad Money, as he highlighted a difficult backdrop for stocks. When a caller inquired about the stock during the episode, Cramer said:

Okay, well, look, it’s expensive, that’s the problem. And it’s one of these companies that has a lot of software as a service, but it’s been pivoting rather rapidly. I’ve been watching this, the stock, and I have mixed feelings about it. But of the stocks that are in the enterprise software business, I think it’s better than most. Is that a lukewarm endorsement? I guess so, but then again, I’m not that bullish to begin with.

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. Cramer mentioned the stock during the May 27 episode, as he commented:

I think the stock is bottoming. I don’t think that it’s going to have a huge year because I do think that in the end, people want hardware. But I mean, do I agree that Bill McDermott’s going to do a good job? I think the stock is, again, I mean, there’s upside, but I feel there’s a little bit upside in some of the other softwares, too. But what I really want to be in is hardware because that is what’s moving in this new era of artificial intelligence, accelerated computing and just amazing opportunity.

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