Jim Cramer on ServiceNow: “These Gains, They May Be Ephemeral”

ServiceNow, Inc. (NYSE:NOW) was among the stocks Jim Cramer commented on as he advised investors on how to take advantage of Wednesday’s market rotation. Cramer noted the AI worries around the stock, as he commented:

Next up, after cratering all year, the software-as-a-service stocks like Salesforce, like ServiceNow, oh, they were flying today. Now, these companies have been hurt by artificial intelligence platforms like Anthropic’s Claude. I believe AI is cutting a lot of jobs… [for] potential and actual users of their products, and their nascent AI businesses, they’re not making up for the lost seats. That’s the method of payment for these companies, by the seat. And that’s why I’m betting that these gains, they may be ephemeral. ServiceNow and Salesforce are down so much for the year, though, off 31 and 38%, respectively. They’re, look, these are due for at least a couple of days’ bounce. But it’s just a bounce, people, until we see earnings that can tell a different story of this entire enterprise software group.

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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