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ServiceNow (NOW) is a Great Company, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About.  ServiceNow Inc (NYSE:NOW) is one of the stocks Jim Cramer talked about.

ServiceNow Inc (NYSE:NOW) is an enterprise workflow management software provider. The shares are down by 43% over the past year and by 27% year-to-date. Needham discussed the firm on February 9th as it kept a Buy rating and a $155 share price target. It commented that ServiceNow Inc (NYSE:NOW)’s Pro Plus modules were exhibiting healthy growth and added that operating metrics such as the Now Assist annual contract value were demonstrating robustness. Specifically, Needham outlined that the annual contract value for the platform had crossed $600 million and attributed it to the demand for AI-driven products. Wedbush added ServiceNow Inc (NYSE:NOW) to its IVES AI 30 list in February and remarked that the recent software stock selloff was due to the market overestimating the risks of AI on software companies. One aspect of software firms that Cramer has frequently discussed when it comes to AI is the seat-based model. He elaborated on this as he commented on ServiceNow Inc (NYSE:NOW):

“Now these are really great companies. These are great companies. If you had told me, two years ago, that we would even have any of that kind of chatter, I would say, do you understand that these are companies where a major bank might agree to a four year deal for ServiceNow. Well now the deals are two years, now we talk about Salesforce maybe not being able to do well in the seat business. I think that maybe one of the problems we have here is just that everyday we hear, it’s just not a big part of your overall, but everyday we hear that these companies aren’t getting the ARR in the out years that you think they are so therefore they are worth less. . .”

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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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