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Morning Bell With Jim Cramer: Buy ServiceNow Stock

Jim Cramer shares stock market news discussed buying ServiceNow stock, developments with Ford, and this week's tech earnings.

Dow futures tumble as global stocks retreat, with Wall Street set for its biggest monthly decline since March, as tech earnings fail to offset the threat of a surge in coronavirus infections.

In the last episode of Mad Money, Jim Cramer said that while Facebook  (FB) - Get Meta Platforms Inc. Class A Report, Amazon  (AMZN) - Get, Inc. Report, Apple  (AAPL) - Get Apple Inc. Report, Netflix  (NFLX) - Get Netflix, Inc. Report and Alphabet  (GOOGL) - Get Alphabet Inc. Class A Report are expensive by traditional metrics when investors look at the metrics that really matter, it's ridiculous to not invest in them.

TheStreet's Katherine Ross and Cramer discussed buying ServiceNow stock, developments with Ford, and this week's tech earnings.

ServiceNow Stock: Buy or Sell?

Several analysts raised their price targets on shares of ServiceNow  (NOW) - Get ServiceNow, Inc. Report after the workflow-software company beat Wall Street's earnings expectations.

Shares of the Santa Clara, Calif.-based company were up 2.7% to $497.10 on Thursday.

Cramer said he would buy ServiceNow stock after these earnings.

Ford Stock: Buy or Sell?

Ford Motor Co.  (F) - Get Ford Motor Company Report shares surged to an eight-month high Thursday after the carmaker smashed Wall Street forecasts for its third-quarter earnings thanks in part to the strongest North American profit margins in four years.

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The car company said adjusted earnings for the three months ending in September were pegged at 65 cents per share and revenues rose 10.5% to a forecast-beating $37.5 billion.

Cramer said that the pandemic “was a saving grace” for Ford. He thinks that Ford will be making money under CEO Jim Farley as the stock will be going up.

How to Approach Tech Earnings

Stocks finished higher on Thursday as economic growth in the U.S. was higher than estimates and jobless claims declined.

The rebound came after the S&P 500's 3.5% drop in the previous session, the biggest loss since June 11. And investors are awaiting earnings reports from some of the largest U.S. tech companies.

Cramer advised investors to “do nothing” after tech earnings landslide. He said that investors should buy Apple Inc.  (AAPL) - Get Apple Inc. Report stock but not trade it, and advised against buying Alphabet Inc.  (GOOGL) - Get Alphabet Inc. Class A Report stock now. He also added that Facebook Inc.  (FB) - Get Meta Platforms Inc. Class A Report will be a “fabulous” stock.

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