Jim Cramer on ServiceNow (NOW): “I Do Think That the Company Represents Actual Value at These Prices”

ServiceNow, Inc. (NYSE:NOW) is one of Jim Cramer’s latest stock calls as he discussed the bullish AI investment thesis amid the Iran conflict. Toward the end of the lightning round, a caller inquired about the stock, and here’s what Cramer had to say in response:

Well, I have to tell you, I’m never going to bet against Bill McDermott, certainly not down here. But I don’t know if it’s long-term, but I do think that the company represents actual value at these prices.

Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels

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. While discussing potential undervalued software buys during the February 6 episode, Cramer mentioned the company and said:

ServiceNow, which we had on the show last week, is also starting to look good, down over 50% from its high. They’re expected to grow earnings by 19% this year. And though you’d have to still pay a slight premium with the stock selling for nearly 24 times this year’s numbers, that’s down from nearly 70 times forward earnings at the end of 2024. ServiceNow also announced a big buyback last week, including a $2 billion accelerated buyback. So you have to assume that they’ll be right there buying along with you.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

Disclosure: None. Follow Insider Monkey on Google News.