Why our cybersecurity stocks are rebounding after getting hammered last week
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s highlights. 1. The S&P 500 rose on Monday after President Donald Trump said the United States was in “serious discussions” to end the war in Iran. But Jim Cramer said he wasn’t ready to treat Trump’s comments as a clear signal to buy. “We’re not putting capital into this,” he said, explaining that the decision was partly due to Trump making a single claim that emerged but Iran later denied it. Earlier Monday, we exited our position in Cisco to replenish our cash position after Jim’s Charitable Trust made its annual charitable distribution, which reduced our cash level from 15% to roughly 6.5%. This year’s distribution was approximately $300,000, bringing the Foundation’s total since its founding to over $4.5 million. 2. Meta stocks are up more than 2% after being named a top pick by Morgan Stanley. “It’s time to buy Meta,” analysts said, noting that the stock has fallen on concerns about big AI investments and, more recently, on new regulatory risks following last week’s two separate court defeats in social media tampering cases. Jim said investors would regret selling Meta due to regulatory concerns, and Morgan Stanley told clients it believed those risks were manageable. As for concerns about Meta’s AI spending, Jim said Monday that Meta is right to aggressively add computing capacity to stay competitive against rivals like Google’s YouTube and TikTok. “I think you have to be respectful of the situation they find themselves in,” Jim said. 3. Club cybersecurity names CrowdStrike and Palo Alto Networks are rebounding on Monday after their shares fell on Friday on concerns about Anthropic’s upcoming model. CrowdStrike rose nearly 5% after Wolfe Research upgraded the stock to a buy-equivalent rating. More capable AI models will force organizations to strengthen cyber defenses, rather than eroding their business as vendors believe, analysts said. Morgan Stanley also reiterated CrowdStrike as a top pick. Palo Alto Networks, meanwhile, rose nearly 7% after CEO Nikesh Arora bought nearly $10 million worth of shares on Friday, sending a strong signal to the market that he believes the stock is undervalued. “I think the market got a lot of things wrong,” Jim said. 4. At the end of the video, the stocks covered in Monday’s rapid fire were: Sysco, Alcoa, Expedia and Colgate. (See here for a complete list of Jim Cramer’s Charitable Trust, long META, CRWD, PANW Stocks.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
