Jim Cramer Says “ServiceNow Really Stands Out as a Poster Child for What’s Happening to the Group”

ServiceNow, Inc. (NYSE:NOW) is one of the noteworthy S&P 500 stocks Jim Cramer highlighted. Cramer mentioned the stock while explaining why the software companies are struggling, as he commented:

ServiceNow was the fourth worst performer with an almost 24% pullback…  Now, I think ServiceNow really stands out as a poster child for what’s happening to the group. We just had chairman and CEO Bill McDermott on the show last Wednesday night after ServiceNow reported a very good quarter. That was a beat on every key line, mostly better than expected guidance for the current quarter and the full year. Now, honestly, I did think that the numbers would allow the stock to rebound. I thought it would at least get some lift, but I was wrong. Instead, it plunged 10% off the numbers, nearly 10%.

It was kind of amazing, frankly. Why did it happen? Because the numbers don’t matter when Wall Street doesn’t believe your industry has much of a future. All these beaten-down software companies are profitable. All of them have gotten cheaper on the way down. Doesn’t seem to matter… ServiceNow has gone from 64 times earnings to 28 times earnings.

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