Jul 22, 2026 · 44 min
ServiceNow defends AI growth as markets punish risk
Mad Money w/ Jim Cramer 7/22/26
The episode tests whether AI-driven enterprise growth can withstand investor concerns about contracts, pricing, speculation, and rising financial risk.
- 1GE Vernova’s selloff may overlook the importance of power-generation equipment to data centers and the electric grid.
- 2ServiceNow’s CEO counters concerns about AI competition and shorter contracts with strong renewals, obligations, and raised guidance.
- 3Cramer distinguishes calculated speculation from reckless bets, warning that power and crypto exposure can bring debt and negative cash flow.
Don't miss
Bill McDermott answers challenges about shorter ServiceNow contracts, pricing pressure, and AI competition by pointing to renewals, remaining obligations, and raised guidance.
The brief
Jim Cramer opens against a volatile market backdrop, linking weakness in SK Hynix and strength in oil to pressure on the major averages.
The stock questions move from SoFi’s fintech challenges to GE Vernova’s sharp selloff, where Cramer argues power equipment remains vital to data centers and the grid.
ServiceNow CEO Bill McDermott makes the central case for AI management and cybersecurity growth, while defending renewals, contract duration, pricing, and raised guidance.
The lightning round favors less speculative names, then turns to the risks of chasing high-upside investments tied to hyperscaler power demand and cryptocurrency mining.
The episode’s clearest tension is whether AI and power infrastructure represent durable growth or expensive exposure to contracts, debt, and rapidly changing markets.
What was said on this episode
34 statements · 28 positive · 5 negative · 1 neutral
CrowdStrike’s cybersecurity product can stop rogue AI agents.
“you should just buy the stock in CrowdStrike. They have a cybersecurity product that will stop it.”
Listen at 2:06
Power shortages will drive a surge in turbine production.
“There's going to be a surge in turbine production because we're short on power.”
Listen at 2:19
GE Vernova is the biggest turbine company and should be owned.
“The demand for these things is insane. So you've got to own GVnova, right? The biggest turbine company in the world.”
Listen at 2:23
Cramer strongly favors NVIDIA.
“I think the world of NVIDIA.”
Listen at 2:55
Johnson & Johnson’s technology business will matter in future years.
“Look out, J&J has tech, although it won't matter for a few years.”
Listen at 3:59
Alphabet’s weak cash flow likely caused its shares to fall after hours.
“the cash flow might have been the swing factor and the reason shares ultimately moved lower after hours.”
Listen at 6:40
Investors should own good companies long term and ignore short-term noise.
“You just have to own good companies long term, block out the short term noise”
Listen at 7:31
Cramer believes the allegations against SoFi lack substance.
“I think that they don't hold a lot of water.”
Listen at 8:51
GE Vernova’s decline is an overreaction and creates a major buying opportunity.
“I think that sudden decline is actually an overreaction. And in fact, I think we're looking at one of the great buying opportunities of this quarter so far.”
Listen at 10:47
Investors should not sell GE Vernova solely because of its earnings miss.
“I think it'd be a mistake to sell GVN over here based solely on the earnings, Miss.”
Listen at 11:22
GE Vernova was due for a pullback after its strong gains.
“I think you could argue it was due for a pullback.”
Listen at 16:58
GE Vernova’s decline is a buying opportunity.
“I see today's decline actually, yes, indeed, as a buying opportunity.”
Listen at 17:48
Investors should keep buying GE Vernova if weakness continues.
“If G. Ebernova keeps getting hammered, you've got my blessing to keep buying on weakness.”
Listen at 17:57
GM could reach $119 at an eight-times forward earnings multiple.
“Even if it only starts trading at eight times earnings based on next year's estimates, which seems reasonable. $119.”
Listen at 24:19
General Motors is a strong diversification investment away from technology.
“I think General Motors is a terrific idea.”
Listen at 24:46
Allstate has performed successfully.
“Allstate's been a winner.”
Listen at 25:29
Ford is significantly undervalued.
“Ford is very undervalued”
Listen at 25:51
Ford is improving its warranty problems.
“I think it's doing that.”
Listen at 25:55
Ford’s stock is not expensive.
“I don't think it's expensive.”
Listen at 26:20
ServiceNow is the fastest-growing major enterprise software and cybersecurity company.
“we're the fastest growing major enterprise software company and now cybersecurity company.”
Listen at 28:19
ServiceNow’s kill switch can stop rogue AI agents.
“We have a kill switch that stops AI agents that go rogue.”
Listen at 29:19
ServiceNow has the industry’s best renewal rate at 98%.
“our renewal rate. which is the best in the industry at 98%”
Listen at 29:58
More AI and incidents will increase ServiceNow’s volume and revenue.
“There's going to be more AI. There's going to be more incidents. And all these things drive more and more volume to ServiceNow, which drives revenue.”
Listen at 31:19
ServiceNow lowers prices when customers increase business volume.
“when people do more business with us, we actually lower the price.”
Listen at 32:37
2.2 billion AI agents will enter the global workforce within several years.
“there's 2.2 billion agents entering the global workforce in the next couple of years.”
Listen at 34:07
ServiceNow is the eighth-largest enterprise cybersecurity company.
“we're the eighth largest cybersecurity company in the enterprise.”
Listen at 34:36
Figma operates in a market Cramer considers too competitive to invest in.
“It's a very competitive market. I don't want to be there.”
Listen at 36:34
Higher interest rates make solar investments difficult to profit from.
“with higher rates, it's really tough to make some money in the solar situation right now.”
Listen at 37:02
Rising rates make IonQ difficult to own, so Cramer avoids it.
“When rates go up, these stocks are very tough to own. So I am going to steer clear of it”
Listen at 37:38
Regional banks have been an excellent investment area.
“the regional banks have been a fantastic place to be.”
Listen at 38:14
Power is scarce, and Constellation Energy has power capacity.
“No, we know that power is in short supply. Constellation's got it.”
Listen at 38:50
A speculative stock allocation of one-tenth of a portfolio is acceptable.
“if one-tenth of your portfolio is in a speculative stock, there's nothing wrong with that level of risk.”
Listen at 40:55
Nebius trades at $218 and NVIDIA owns 9.3% of it.
“Nebius is now at $218, and NVIDIA owns 9.3% of the company.”
Listen at 42:28
Cramer thinks Kiel may be a promising speculative investment.
“I think you might be on to something.”
Listen at 43:32
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Books & mentions
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