Cramer's Morning Take: Palo Alto Networks 8/21/23

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What do you see on the horizon for financial markets?

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Jim Cramer (0:33)

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

We have a very exciting week. One of our stocks reports Wednesday, that's NVIDIA, and we also have the Fed talking on Friday. And fortunately, at 4.7, you know we offer you the oscillator for a deal. You can check that out. It's minus 4.7, which tends to be a level that I find you need to do some buying.

Jeff Marks (0:58)

Right. You don't have to go all in, gradually put money to work. We certainly have plenty of cash on the sidelines at around 11% entering today.

But as the market comes down, yes, certainly looking for opportunities to buy quality names that have pulled back 5%, 8%, 10% over the past month and change, especially ones that reported good quarters. Those are the ones you want to stick with.

You don't want to be buying something that maybe had a so-so quarter or a miss or anything like that. It's the good quarters. Those stocks were the ones that will come back.

Jim Cramer (1:29)

Look, one of the best quarters was GE Healthcare.

Jeff Marks (1:32)

Yeah.

Jim Cramer (1:33)

Great quarter.

Jeff Marks (1:33)

Beaten Rays, good orders.

Jim Cramer (1:35)

And people didn't care. And what happens is, is when you don't care, like Walmart, which we don't own, last week, Walmart's a tremendous buy because people don't care. There is a notion, I should talk about this at the top of the show, there are these situations, like a Walmart, like a GE Healthcare, where the company reports a number that's very good, and the stock starts going down, and then it snowballs.

Snowballs down. Because people say there must be something wrong. There is nothing wrong with GE Healthcare. Now, another stock where nothing's wrong is Palo Alto Networks.

Jeff Marks (2:06)

I was thinking of the same exact transition phrase, because of course everyone was freaking out into last Friday's Friday night earnings. It's a Friday night. Why are they reporting on a Friday night? What does this mean? There's a lot of speculation, but it turned out to be just another really strong quarter from Palo Alto.

Jim Cramer (2:24)

Now, remember, we came here, we said, look, he's saying he has to report Friday because he's got this big sales meeting, and he wants to get it done. I pushed back on him, I said, listen, why not Thursday? He goes, well, the meeting's Friday. I don't want to have, I'm not going to report it on Thursday.

He starts his conference call with a little jingle about Friday.

And I know he's not beyond, he's very charming, he's not beyond having some fun. But the fact is, is that there was a legitimate excuse, and he never, ever told, this guy's been as straight as possible. And what you have to know is that the total revenue is great, total billing is great, Justin Precaf's margin was great. The amount of money they took in on sales, not as great.

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