Jim Cramer Says “I Am Not Going to Call Bottom in ServiceNow”

ServiceNow, Inc. (NYSE:NOW) is one of the stocks Jim Cramer shared his thoughts on. Noting that the stock is at a one-year low, a caller asked if it is time to buy it, and Cramer replied:

“Okay, so ServiceNow, wow. Is it at a one-year low? It is down a hundred bucks. Holy cow. Alright, so why is ServiceNow going down? Enterprise software, whether it be Adobe, which has really been hammered, whether it be Salesforce, which is not doing well, the chart that is, or ServiceNow, it’s pretty awful. I am not going to call bottom in ServiceNow. It is just too darn hard for me.”

Stock market data. Photo by Jakub Zerdzicki on Pexels

ServiceNow, Inc. (NYSE:NOW) provides a cloud platform that supports digital workflows through AI, automation, low-code tools, analytics, and a set of IT, security, customer-service, and employee-experience products. During the January 5 episode, a caller highlighted the recent stock split and asked for Cramer’s opinion, to which he replied:

“Well, the problem is that it is a software company and the software companies are being eaten by the hardware, some would say. It still has a high price-to-earnings multiple. I was surprised the stock gave up so many points on Friday. I thought it would bounce back today, and it really didn’t. I think that at 42 times earnings, it’s a PE multiple, it’s still a little too high for me. It is one of the better companies in an industry that is being, well, it’s having a tough time with AI, even though it is an AI leader itself. Odd, huh?”

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