CNBC Investing Club: Cramer’s Morning Take on CrowdStrike 5/18/26

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Jim Cramer (1:02)

Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 1020 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

Jeff Marks (1:23)

And then we bought 20 shares of CrowdStrike between February and March when the stock sold off on concerns that AI was going to replace it. We said every single day, that's the wrong view. AI is actually going to accelerate their business, and the market has finally come into that view. As you can see, the stock since April has been on an absolute tear, rallying to new all-time highs, and today it's going up with software before it got lumped together with software on the bad days. Now it's rallying also with software on the good days.

So we just sold the 20 shares. This is going into a very large position because of how strong it's been.

Jim Cramer (2:01)

Exactly. Now, we have to understand that throughout this period, George Kirst, the CEO, was saying, listen, we are not going to get hurt. We're not a casualty.

It's a tailwind, not a headwind. The street thought it was a headwind because Anthropic was making noises they're going to go into this business against CrowdStrike. They were saying that, by the way, just so you know. And then, with those comes along, you realize that you need more protection than ever.

Jeff Marks (2:25)

They formed Project Glasswing with Palo Alto is also involved. And another one at All Time High.

Jim Cramer (2:30)

Absolutely. So what happened here is that people started realizing that CrowdStrike was not going to be hurt. And then, amazingly, it's still in that index. And CrowdStrike is a very big part of the index. It's moving service now in Salesforce. So it's getting another tailwind. And I think it's right to be able to trim what we want because we don't like to be so big in anything. And this stock is just parabolic.

Jeff Marks (2:56)

Yeah, I was joking earlier. It's kind of heads being AI doing well.

It's now rallying with that. And head software doing well, it's rallying with that. So a great reason to sell into that strength and take profits after seemingly move straight up. Do a lot of earnings upcoming. Home Depot reports tomorrow before the bell.

Jim Cramer (3:15)

And there, I think that even if they say things are just OK, that would be very big. Why? Because this is a good company.

Jeff Marks (3:22)

Yeah. And the multiple has come down too. But the housing improvement cycle is delayed because mortgage rates remains. Yeah.

Jim Cramer (3:30)

And lows is the better because it's to yourself. And this has got much more professionals since we've seen it a couple of years ago.

SPEAKER_5 (3:36)

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