Current economic slowdown is close to 2008 financial crisis? ServiceNow CEO

• ServiceNow On Monday, CEO Bill McDermott told Jim Cramer that he does not expect the current economy to see a market drop similar to the 2008 financial catastrophe.
• “This is not even close to 2008. In 2008, I was with a company where we lost a billion euros in pipeline in a day. That was a crisis,” McDermott said in an interview on “Mad Money.”

On Monday, ServiceNow CEO Bill McDermott told Jim Cramer that he does not expect the current economy to see a market downturn similar to the 2008 financial catastrophe.

“This is not even close to 2008. In 2008, I was with a company where we lost a billion euros in pipeline in a day. That was a crisis. This is not a crisis,” McDermott said in an interview on “Mad Money.”

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“If anything, this is a crisis of opportunity. The digital transformation market is $11 trillion in the next three years, okay. If you’re going to fight inflation, you’re going to keep your employees inspired, no matter where they work from. … You’re going to connect to your customers,” he added.

McDermott’s remarks come as the Federal Reserve aims to tighten its balance sheet and boost interest rates in order to control inflation, raising fears on Wall Street that the steps would trigger a recession and slow the recovery from the height of the Covid epidemic.

The CEO of a cloud-based software company also suggested that enterprises who want to survive the coming economic downturn must invest in digital innovation today. McDermott pointed out that none of the top 30 companies in the S&P 500 in 1989 are still on the list today, based on market capitalization.

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“If you don’t change, and you don’t transform your businesses, and you don’t hit the accelerator now when headlines are down, you might not be on any list in 30 years,” he said.

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