Jim Cramer Says ServiceNow is One of the Few SaaS Stocks He Can Recommend

ServiceNow, Inc. (NYSE:NOW) is one of the stocks that Jim Cramer expressed thoughts on. An investing club member inquired about Cramer’s thoughts on the stock during the lightning round, and he replied:

“I think ServiceNow is one of the few software-as-a-service stocks that I can still recommend without hesitation. I think Bill’s doing terrific with that company, and he’s a real great representative of his institution.”

ServiceNow, Inc. (NYSE:NOW) provides cloud-based workflow and automation solutions through its AI-powered Now Platform. Its products support IT, security, customer service, HR, and enterprise operations management. A caller inquired about the stock during the August 11 episode, and Cramer responded:

“Okay, ServiceNow short term is being hurt by a call out of Melius, and that’s by Ben Reitzes, who was saying that these software as a service companies are going to be under pressure because their seat models can be hurt by AI. I think, longer term, ServiceNow has really good AI, and it would not be a stock that I would want to bet against. So, ServiceNow, longer term, I think is fine. Shorter term, I think it’s going to be under pressure.”

While we acknowledge the risk and potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW and that has 10,000% 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.