CNBC Investing Club: Cramer’s Morning Take on Palo Alto 6/3/26

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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 10 20 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.

Jeff Marks (1:24)

If the market were to turn positive, you're gonna need the help of tech. Tech is down today, seeing some weakness in software.

Although, you know, maybe viewed as good news that Alphabet upsized its equity capital raise to almost 85 billion, a good sign of demand. Still have that at the market, that's gonna begin in Q3.

Jim Cramer (1:44)

People flipped and made a lot of money if they got all the deal. I think they priced the deal and placed the deal. You need both to be right very well.

Jeff Marks (1:53)

Yeah, so we'll see Alphabet getting ahead of the massive IPOs expected later this year.

Jim Cramer (2:00)

They got Berkshire.

Jeff Marks (2:02)

Yeah, Berkshire with a $10 billion private placement there.

Jim Cramer (2:06)

You know what we should mention? There's this index, this IGV, this Software Index.

Jeff Marks (2:10)

Yes, ETF.

Jim Cramer (2:12)

ETF. And it's really taken down everything today, including some of our stocks. And it's coloring the technology tape, which is going to be the problem today.

Jeff Marks (2:22)

You did have a nice move in IGV over the last few weeks. That continued into Monday. Last few days have been down. Cybersecurity is a big cohort of that. We are seeing some weakness in Palo Alto pulling back, despite a beaten raise. The stocks had a strong move, though. Heading into last night, it was up 85% since the end of March.

Jim Cramer (2:43)

And actually, Palo Alto, okay, listen. It's been down four out of five times that it's reported.

The next day is down, too. What is important, though, is that between 70 days average, it's up 10% from where it reported. So a lot of people freak out and they don't know what's wrong. Every single analyst, 14 out of 14 analysts, raise their price target. I'm urging people to hold on, but to be ready for the stock to be down 7% to 8% today.

Jeff Marks (3:12)

Yeah. Well, look, the IGV tends to fall because of concerns that AI is going to disintermediate a lot of those businesses.

Jim Cramer (3:20)

IBM is down 20%. It was up a lot yesterday.

Jeff Marks (3:23)

But what we learned last night from Nikesh on Mad Money, he said that with Mythos, ever since that was released, the number of customer meetings they've had has been extraordinary. 800 meetings in the last six weeks to help customers.

Jim Cramer (3:40)

Almost 10 times what they had. So the idea that this thing didn't help them is ridiculous. I know that there are people who want the stock lower. That means they're trying to pressure it down. Understand that when you have four or five days where it's been down, that is manipulation. And look, it's okay. People are out of the city. This is not Andrew Left.

This is people just selling it down. They're allowed to do it.

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All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, Internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer.

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