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ServiceNow, Inc. (NYSE:NOW) was among Jim Cramer’s stock calls as he suggested that many red-hot stocks can keep making investors money. Cramer mentioned that the stock was hit recently after reporting its quarterly results because the report and guidance updates failed to get investors “excited.”

After the close, we got results from ServiceNow, the cloud software company that helps its customers automate all sorts of back-office jobs, including IT jobs. Now, this stock’s been crushed by AI displacement worries, falling from just under $240 at its peak last year down to $103 as of today’s close. And tonight, ServiceNow’s getting slammed again after the company delivered a set of results and guidance updates that frankly just weren’t good enough to get investors excited again, even as the company’s adamant that business is business as usual, with most benchmarks better than expected.

ServiceNow, Inc. (NYSE:NOW) provides a cloud platform that supports digital workflows through AI, automation, low-code tools, analytics, and a suite of IT, security, customer service, and employee experience products. When presenting his game plan on April 17, Cramer expressed that “good news” from the company “will move the stock higher.”

Alright, there’s been a ton of selling by shareholders in ServiceNow. Many former shareholders were worried that it’s now, it’s just too… [easy] for Anthropic to disrupt. Now, when you hear that, that’s the kiss of death, you can’t seem to return it. I think we’ll get a very solid number this time from Bill McDermott. The issue is, will it matter? I think good news will move the stock higher and not be ignored like it’s been for the past few quarters. But I’m sticking my neck out because that’s not been the case.

While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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