ServiceNow, Inc. (NOW) Is Competing With The Rise Of AI, Says Jim Cramer

We recently published Jim Cramer’s Fresh 14 Stocks & Thoughts About Market Performance. ServiceNow, Inc. (NYSE:NOW) is one of the stocks Jim Cramer recently discussed.

ServiceNow, Inc. (NYSE:NOW) is a software-as-a-service company that enables businesses to automate their workflows and manage their IT operations. It is among the handful of companies that have had to adapt their businesses to AI. ServiceNow, Inc. (NYSE:NOW)’s shares have lost 8% year-to-date despite having jumped by 25% in April. The stock rose after the firm’s first-quarter earnings report saw it beat analyst EPS and revenue estimates of $3.83 and $3.08 billion by posting $4.04 and $3.09 billion. Crucially, the shares were also helped by the low end of the firm’s fiscal second quarter subscription revenue estimate of $3.03 billion beating analyst estimates of $3.02 billion. Cramer discussed the effect of AI on ServiceNow, Inc. (NYSE:NOW)’s business:

“[On Morgan Stanley saying Tim Cook’s successor could benefit from having a hardware background] Well look, it’s funny hardware is part of the, I’m glad you mentioned hardware, hardware’s part of the issue of how NVIDIA got to where it is. This is an essentially, there’s a belief in many people on Wall Street and in Silicon Valley, that hardware prevails here because we’re gonna get rid of a huge number of people who would do SaaS, you know, software as a service, and that includes. . .includes ServiceNow. . . . Because there are going to be fewer and fewer people who are actually in the organization who need that.”

Previously, Cramer had discussed ServiceNow, Inc. (NYSE:NOW)’s business offerings and AI:

“Alright, ServiceNow. Well, we love ServiceNow, okay? ServiceNow is, you know, we’ve got corporate software that also is AI, okay. It’s enterprise software with AI.”

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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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

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