Cramer's Morning Take: CrowdStrike 12/2/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. There is a bit of weakness overall tone, but I'm focused on two things. Tech, which seems to be in a scramble to move up, in part because I think problems with Intel, people are getting excited about other semis. And then at balance against that, the oscillator, which is now 5.5, which is something that says, we're not going to put money to work.

Jeff Marks (0:28)

Yeah, overbought, remember anything above 4, overbought. We are also coming off the best month of the S&P for the year. But we're also entering a very seasonally strong time, as you had closer toward the end of December. So some dueling forces there. You do have yields a little bit higher today. They did come down pretty significantly last week. But picking back up today, had some decent economic data. And then also, the threat of tariffs also always out there as well. Jobs Report Friday. Why don't we talk about some things from last week, though? A little bit of a catch up. Starting off with CrowdStrike, because they reported Tuesday evening.

Jim Cramer (1:10)

Now, we go over, and line by line, we have a very good reporter on it, if you want to see exactly. I think our report was really excellent. You have George Kershaw on tonight. And I would tell you that this quarter was fantastic. The problem was this.

It borrowed, just like not Palo Alto. So, I want to urge everyone to recognize, this is the opportunity. You do not get this kind of opportunity. We saw this, by the way, I know these are different industries, but in TJX, where the company reported, and people said, ah, it just ran from 100 to 120, there's no upside, it didn't read that great. Well, and then you look at TJX, and it's just been incredible. I think that CrowdStrike's going to have a similar move up, and I'm urging people to be in it.

Jeff Marks (1:50)

Yeah, I mean, look, with CrowdStrike, very little churn, gross retention 97%, strong top in, being on revs and earnings, ARR, 150 Falcon Flex deals, those are larger deal sizes, longer commitments. Part of it was expectations after a really big run. I know the implied fourth quarter annual recurring revenue guide was a little bit below estimates, but I think that's also some conservative in there as well, which they tend to do after a nice beat as well. They don't really ever miss, so I wouldn't expect that going forward.

Jim Cramer (2:25)

They had a glitch that shut the world down, and the retention was incredible. Once you do retention, then you can do new. They had to play defense, now they're going to play offense. Again, why I think that if you do not own CrowdStrike, this is it. Even though we're overbought, CrowdStrike is on the move. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive morning minis every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

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