We recently shared Jim Cramer Rubbished Circular AI Deals & Commented On These 18 Stocks. ServiceNow, Inc. (NYSE:NOW) is one of the stocks discussed by Jim Cramer.
ServiceNow, Inc. (NYSE:NOW) is an enterprise workflow automation software firm. Its shares are down by 32% over the past year and by 30% year-to-date. Truist discussed the firm on April 15th as it lowered the share price target to $125 from $175 and kept a Buy rating on the stock. The financial firm discussed ServiceNow, Inc. (NYSE:NOW)’s role in enterprise AI rollout and outlined that its strong industry position can help the firm in this regard. Oppenheimer also discussed the firm on the same day. It cut the share price target to $130 from $175 and kept an Outperform rating. As per Oppenheiner, ServiceNow, Inc. (NYSE:NOW)’s Q1 update could do little to soothe investor fears about the impact of AI on the enterprise software market. The shares gained 9.9% between April 14th and 16th, and Cramer discussed the movement in the broader context of the enterprise software market:
“This is the complete revenge of the software companies, whether it be ServiceNow and Salesforce . . .And, the question is what’s real, what’s not. What’s oversold, and what’s really taking off. . .Now David, all of these are linked. You and I knew that Blue Owl could make it. . .that it was a gating issue, liquidity issue.
“ServiceNow, 50% of it. . went to program, AI”
Lakehouse Global Growth Fund discussed ServiceNow, Inc. (NYSE:NOW) in its Q1 2026 investor letter:
ServiceNow is a category leading US software business that automates complex corporate workflows across IT, HR, and customer service. It acts as a deeply embedded digital utility for the world’s largest enterprises, with 80% of the G2000 as customers and industry leading renewal rates around 98% – underscoring the mission critical nature of their platform. Recently, ServiceNow has experienced a significant drawdown due to the “death of software” and AI “seat contraction” narrative.
However, its quarterly results released at the end of January came in ahead of both its own guidance and analyst expectations. Revenues grew 19.5% in constant currency terms to US$3.6 billion and operating profit grew 31% to US$1.1 billion. Crucially, the company directly countered the AI “seat contraction” / AI “loser” narrative by disclosing monthly active users on the platform grew 25% year-on-year and that their new AI solutions hit US$600 million in annual contract value (ACV). This exceeded their US$500 million target set for 2025 and management also noted they are on track to exceed their US$1 billion ACV target for 2026…” (Click here to read the full text)
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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