We’re buying more shares of this cybersecurity giant after a tough post-earnings stretch
We are buying 40 shares of Palo Alto Networks at roughly $185 each. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 450 shares of PANW, increasing its weighting to 2.25% from about 2.05%. We’re picking up more shares of this cybersecurity leader that has fallen significantly since earnings. The stock has tumbled about $15, or about 8%, since the company reported earnings last Wednesday evening, despite a clean beat and raise, driven by continued momentum in its “platformization” strategy. Platformization means customers buying entire suites of products and consolidating their cybersecurity spending with Palo Alto instead of purchasing different solutions from multiple vendors. Platformization has been key to Palo Alto’s acceleration in market share gains over the past year and a half. PANW YTD mountain Palo Alto Networks YTD Palo Alto shares fell immediately after earnings as the results didn’t live up to lofty investor expectations. Also, some might not have liked its $3.35 billion deal for Chronosphere, a next-generation observability platform. But we’re fans of this deal. Between Chronosphere and its deal to buy identity-security leader CyberArk , Palo Alto Networks is setting itself apart in the AI era by adding two platforms just as their respective markets hit key inflection points. More broadly, we strongly believe in cybersecurity as something companies cannot skimp on, especially in this elevated threat environment. It’s why we also own CrowdStrike , which reports earnings next week. We also have a buy-equivalent 1 rating on CrowdStrike. (Jim Cramer’s Charitable Trust is long PANW, CRWD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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