Jim Cramer - Mad Money Servicenow NOW-N COMMENT Jul 26, 2023

Runway now shorter. 12-month price target of $876. Main reason it's been a standout has been CEO and management team. Recent C-suite shakeup, but CEO still there.

Is up 24% in the last 3 months. Shares are high, but they will blow away estimates in their next report.

They report next week. Revenue growth this year is 22% and EPS 32%. They know how to monetize AI.

It reports Wednesday. They will report and shares will fall after hours--and buy it then. It will rally first thing the next morning. This happens over and over because short-sellers push it down. NOW doesn't miss reports.

They're monetizing their AI tools.

Is down nearly 20% in the last 3 weeks. With 21% revenue growth and 18% EPS growth, they continue to monetize AI.

Is the king of workflow automation, so it's perfect for Agentic AI, the next wave in AI. Last January, they said that AI is making them money. He targets $1,159.

Today they delivered a rock solid quarter including beating non-GAAP revenues, and reiterated their full-year forecast and this quarter despite this volatile environment. It's enough to turn this stock around.

Dangerous name to be out of. Huge run, strong Q1. Reinforced leadership in enterprise AI. Guidance is in line. Concern about government cuts, but overall average deal size up by 1/3. 18% growth, but trading at 40x 2026 and 33x 2027. A bit expensive PEG ratio. Have to pay up for good names, but wait for better entry when PEG closer to 1.

Has shown some of the most durable revenue growth in the entire market. Though more expensive, definitely likes it more than CRM. Deserves the valuation premium because it executes so well. Good long-term hold. Over time, need to see traction around AI for the story to continue working. Great company.