ServiceNow, Inc. (NOW): Jim Cramer Wonders If - "They Made It Because of DOGE"

We recently published Jim Cramer’s Surprised About US Travel As He Discusses These 18 Stocks. In this article, we are going to take a look at where ServiceNow, Inc. (NYSE:NOW) stands against other stocks that Jim Cramer discussed.

In a recent appearance on CNBC’s Squawk on the Street, Jim Cramer commented on the growing amount of stock buybacks and how the buybacks during April-May were the third best historically of the year. “Well, I’ll tell ya, the banks are the ones that are going to do it. They’re gonna start it and the banks have an appetite for their stock that is crazy,” he said.

Cramer also commented on President Trump’s senior counselor for trade and manufacturing, Peter Navarro. Navarro is an ardent believer in the trade imbalance that the US faces abroad and Cramer agrees with the assessment. “Well, Peter’s got, strong views. Peter’s a person with strong views,” according to Cramer.

Despite the fact that markets were roiled in April due to the President’s tariff announcements, when his co-host remarked that Navarro might not have the President’s ear, Cramer replied: “Well if that’s the case, death by China is winning right now. And death by China is Navarro.”

Another news bite that was brought up on the show was the decline in foreign arrivals in the US and the President saying the decline in foreign arrivals wasn’t a big deal. Cramer agrees with Trump as he said:

“So far, not. I think that the dollar being cheap for the first time in our lifetime is gonna make people. . .but when you listen to Proctor, you’re very conscious of the fact that the dollar’s weak and IBM and I think that people in the end, they’ll be excited. Excited to come to a place where the dollar’s finally not crushing them. And that does matter.”

However, he added:

“Well look, it’s not, obviously I think that there’s issues involving our country and how people view us and, look, you don’t need me to tell which way the wind blows. But I would have thought there would have been more weakness in travel. I’m just surprised that it’s just not bad.”

Our Methodology

To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC’s Squawk on the Street aired on April 24th.

For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

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.”

Overall, NOW ranks 3rd on our list of stocks that Jim Cramer 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.

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