Cramer’s Morning Take: Palo Alto Networks 11/20/25

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Jim Cramer (1:02)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (1:09)

Let's turn to Palo Alto. Another better than expected quarter. Revenue EPS above consensus. They slightly raised their guidance for revenue and EPS, which is a good sign after the first quarter of a fiscal year. Small beats in next-gen security ARR. Continued momentum in platformization, 16 net new in the quarter. Some big wins. They had a $100 million deal with a large telecom provider. $33 million deal with the US. Cabinet Agency. They announced another acquisition, $3.35 billion for Chronosphere, so they're getting it to observability.

They're a leading solutions provider at a third of the cost. ARR grow in triple digits. So they have that deal in the works. They're also on track to close CyberArk, which is the biggest deal in company history, identity security.

Jim Cramer (1:56)

And that has more ARR, the recurring revenue, than Palo Alto. They're just going to move the ARR up, and that's going to make it even easier for the analysts to like it. So you have this. There will be people tomorrow who will defend it, and I think it goes way back.

Jeff Marks (2:13)

Yeah, a lot of defending already by a lot of the analysts talking about the good momentum they're seeing in the business. Interestingly, CrowdStrike on the move today higher. They reported in a couple weeks. So we'll see from them.

Jim Cramer (2:27)

Wow, that's a nice move.

Jeff Marks (2:28)

Yeah.

Jim Cramer (2:28)

I didn't see that move.

Jeff Marks (2:30)

But it is interesting because with Chronosphere, they are saying, this has kind of been their playbook of, they like to, what they say is acquire businesses, assets, right before they see an inflection in the industry. They are doing that with CyberArk and Agenetix, and with Chronosphere, they are saying the whole observability industry needs to change because of AI.

Jim Cramer (2:50)

AI, and you talked about that.

Jeff Marks (2:51)

Observability is like monitoring apps on the internet. He was describing food delivery. If an Uber app goes down, you can track that and implement a fix.

Jim Cramer (2:59)

Cisco brought Splunk to do the same thing. And of course, Nikesh couldn't resist saying, well, wait a second, they are so far behind. But Cisco had some good news when it came to Quantum last night. So I think that people who want to... Cisco is the cheapest stock of any of the tech companies I've followed.

Jeff Marks (3:17)

Yeah, the high teens, multiple, and they got... They're building out a nice AI business with hyperscalers, enterprise, or investing too.

Jim Cramer (3:28)

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Your new home is now ready. DR. Horton, America's builder, has new homes that are ready today. With new construction communities in Ellensburg and throughout the Greater Seattle area, DR. Horton has the right home for you. At DR. Horton, we're still building. With flexible living spaces, smart home technology, and two and three car garages. More communities and more homes available every day. Find your new home in Ellensburg. Now ready at drhorton.com. DR. Horton, America's builder, an equal housing opportunity builder.