Cramer's Morning Take: Palo Alto 8/25/25

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Jim Cramer (1:03)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting. Now, we've gotta talk about some things that happen on our way, because one of them is very price-sensitive. I have to tell you, you need to buy Palo Alto. It's now given up its gain. Of the conference calls I read last week, it was the best.

Jeff Marks (1:22)

Yeah, I was gonna say this was probably the best earnings report last week. You had a big B, they gave upside guidance for the full fiscal year. Down still significantly from when they announced that acquisition of CyberArk.

Jim Cramer (1:37)

Which by the way I support. I've known the company, I once spoke to the board.

Jeff Marks (1:41)

I mean, they're playing offense with it. It's not a defensive move because growth is slowing. And really, just to go back what Nikesh Arora, the CEO has been saying, the identity market he believes is at an inflection point, which is why now is why he thinks is a great time to buy CyberArk. So it was really good quarter. We're also gonna hear from CrowdStrike Wednesday night.

Jim Cramer (2:01)

Yes, and I'm very bullish on CrowdStrike. I want to be sure people don't think, oh my god, Jim violated the rules. You know, CrowdStrike was, I mean, the guys from CyberArk, they were having a go away party for someone and they happened to be at the NASDAQ, it was at the NASDAQ, but I've always believed in Udny Mukati. A big IDF component there, the IDF, the Israel Defense Fund, I'm not talking about anything political here, okay? They have unbelievable counterintelligence and that's who's doing, that's who...

Jeff Marks (2:31)

I thought TJX was another great quarter.

Josh Brown (2:33)

What the hell was a damage quarter?

Jeff Marks (2:34)

Like we always say, it was beats above guidance across every metric. They raised the outlook. Stock was like up 8%, I think, initially. It has come down a little bit since that, but still a strong quarter and a nice move over the last quarter.

Jim Cramer (2:47)

Let's go over what was said on this call, because it's really important. This company, everything trades as a function of X, okay? This company trades as a function of inventory that they have, so that therefore they have the treasure hunt. They were talking about one of the most bountiful inventory moments in their history, and that is exactly what drives things. Hey, by the way, Home Goods was the star this time, and that's very good. The margins are very big at Home Goods, and by the way, Home Goods has a huge turnover. Like, if you go right now for Home Goods and you're going for Halloween stuff, you got like another three weeks, and then you're out, because they move in the Thanksgiving stuff. So these guys do, I mean, they're such good managers.

Jeff Marks (3:28)

Yeah, every division was strong, positive transaction growth. I know International Canada was actually...

Jim Cramer (3:33)

Well, how about the Canada? They called out Canada. Remember, Target moved to Canada and they failed.

Jeff Marks (3:39)

Yeah.

Jim Cramer (3:41)

Start your day with my out look on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_6 (3:54)

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, NBC Universal or their 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 the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Cramer. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer.