Jim Cramer’s Surprised About US Travel As He Discusses These 18 Stocks

3. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders In Q4 2024: 110

ServiceNow, Inc. (NYSE:NOW) is an enterprise software company. The shares have lost 10% year-to-date, partially due to an 11% dip in January after the firm cut its 2025 growth estimates. Growth is the holy grail for enterprise software firms, and naturally, investors didn’t react well, as ServiceNow, Inc. (NYSE:NOW)’s 2025 subscription revenue forecast of $12.7 billion missed estimates of $12.9 billion. However, April’s proven to be a good month for the stock as the shares surged by 16% after ServiceNow, Inc. (NYSE:NOW)’s first-quarter results beat estimates and it lifted its full-year forecast. Here’s what Cramer said:

“The only one which was blow away was ServiceNow, Bill McDermott. . . .But, ServiceNow is what we’re talking about for a second because a lot of people felt they were gonna miss because of DOGE. I’m now thinking they made it because of DOGE. I think people have just said you know what, we bring in ServiceNow, we can really make this company. . .”

“Okay so these are companies that are now perceived as being secular winners. You bring them in, they figure out ways to save money, and everybody likes them. What I didn’t count on was that ServiceNow was also going to move into customer relations management. Moving into the Salesforce territory. So we have maybe a new. . .death match.”

“I told people ServiceNow could be up 200 dollars in the next two days. That’s how great that quarter was.”

“I remember going to, listening to a panel, and it was actually a panel that was, CNBC, had very very strong panel where they talked about SBC. . . .and the speaker was saying if you have this kind of thing that David is talking about, stock-based compensation, forget the earnings, I don’t even wanna see them. I don’t even wanna see them. So I think you’re absolutely right to mention it, particularly because that quarter would not have been nearly as great.”

“The reason I say that in this case I don’t want to focus that much on it is because they have this rule, the rule of 50 so to speak. They have great growth and they have great margin expansion. And that is very, very hard to do and most of these enterprise softwares cannot do it. It was an excellent quarter by the way.”