ServiceNow, Inc. (NOW) Could Take Over And Release Government's Job Market Reports, Says Jim Cramer

We recently published 11 Latest AI & Other Stocks On Jim Cramer’s Radar. ServiceNow, Inc. (NYSE:NOW) is one of the stocks Jim Cramer recently discussed.

ServiceNow, Inc. (NYSE:NOW) is a software company that enables companies to manage and analyze their daily operations. Its shares have lost 15% year-to-date as Wall Street shifts its focus to AI-focused software companies and shuns enterprise software providers. One key factor that has driven ServiceNow, Inc. (NYSE:NOW)’s shares lower is its per-seat model, which can be disrupted by AI. Cramer has defended the firm’s AI-exposure in his previous comments, and he asserted that ServiceNow, Inc. (NYSE:NOW) could help the US government with producing accurate inflation and labor market data:

“You gotta outsource this. You’ve got to give this to ServiceNow. It cannot be done by the government. . .You can’t have the revisions like we had in employment and think there’s any substance. . .

“I think that it would be aplomb to handle that business. I think that it would be great bragging rights. I also think a guy like Bill McDermott, great American, he’d just say listen, we’ll take it on. We’ll do at cost. McDermott would do that, ServiceNow, I mean. ServiceNow by the way being hurt by this Melius thesis, Ben Reitzes thesis, that AI is eating software. Which the judge talked about extensively yesterday in a very good roundtable. Very good roundtable.”

Previously, Cramer asserted that ServiceNow, Inc. (NYSE:NOW) is still a great long term AI play:

“Okay, ServiceNow short term is being hurt by a call out of Melius, and that’s by Ben Reitzes, who was saying that these software as a service companies are going to be under pressure because their seat models can be hurt by AI. I think, longer term, ServiceNow has really good AI, and it would not be a stock that I would want to bet against. So, ServiceNow, longer term, I think is fine. Shorter term, I think it’s going to be under pressure.”

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.

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