Jim Cramer Is Talking About These 5 Stocks

2. ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 90      

ServiceNow, Inc. (NYSE:NOW) provides enterprise cloud computing solutions. The journalist investor discussed the stock during an appearance on CNBC on July 13, stating that a lot of people thought that the May bottom for the shares was going to hold. He noted that the stock was at a “crucial level” and indicative of a lot of cloud companies. However, he clarified that the firm was not meant to be representative of the entire market and dismissed as a “grave mistake” that Bill McDermott, the CEO of the firm, had talked down his firm in a recent interview. 

On July 19, Bernstein analyst Peter Weed initiated coverage of ServiceNow, Inc. (NYSE:NOW) stock with an Outperform rating and a price target of $646, noting the firm had delivered one of the most durable growth stories in the cloud sector. 

At the end of the first quarter of 2022, 90 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in ServiceNow, Inc. (NYSE:NOW), the same as in the preceding quarter worth $8.4 billion.

In its Q3 2021 investor letter, Palm Capital, an asset management firm, highlighted a few stocks and ServiceNow, Inc. (NYSE:NOW) was one of them. Here is what the fund said:

“ServiceNow, Inc. (NYSE:NOW) shares were our final top contributor for 3Q on a strong beat and raise quarter. The company reported 31% subscription revenue growth, 30% subscription billings growth, and a 19% non-GAAP FCF margin for the quarter, while raising full year subscription revenue and billings guidance to 29% and 31%, respectively, as well as raising non-GAAP FCF margin by 100 basis points to 31%.

ServiceNow, Inc. (NYSE:NOW) is a best-of-breed provider of both IT Service Management (ITSM) and IT Operations Management (ITOM) solutions to enterprise customers. The company’s products serve mainly its clients’ internal employee base with a current focus on automating the process of IT deployment, configuration and service and management of IT assets across an organization. Both its ITSM and ITOM solutions are delivered as a software-as-a-service (SaaS), and are each leading solutions in growing markets, driven by the secular trend of enterprises transitioning all aspects of their business and operations to the cloud. As the company maintains and adds customers, upsells them, and expands into adjacent markets, we believe ServiceNow, Inc. (NYSE:NOW) should sustain a strong long-term revenue and FCF growth trajectory.”