Jim Cramer Sounds the Alarm on China Rhetoric and Dollar Panic Then Analyzes 11 Key Stocks

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1. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund holders: 110

Cramer brought up ServiceNow, Inc. (NYSE:NOW) while warning about potential cracks in the enterprise software space. Though he acknowledged the company’s strong track record and government business exposure, he cautioned that valuation and macro pressures could challenge its short-term performance. Here’s what he said:

“So ServiceNow, NOW, Wells cuts its price target. This is something that we haven’t talked about. These enterprise software companies, they’ve all been bubbling, people feel they are immune. This is one that says to me, be careful. There could be a slowing in enterprise software, too. Now, ServiceNow is a unique business. Some people say 13% with the federal government. Therefore, you’re running into DOGE. I just say ServiceNow has not missed their quarter. The last quarter was just OK. They will tell you it was great. But just be aware that if you want to hide enterprise software, it might be a harder place to hide it. And I just want to warn people that you don’t hide and hide multiple stocks. You hide in consistent growth, health care stocks, and companies that have nothing to do with anything that DOGE could be involved with. I understand DOGE is still very active.”

NOW is a stock Jim Cramer recently discussed. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NOW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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