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Cramer's Morning Take: Palo Alto 5/21/24

Jim Cramer breaks down earnings from this cybersecurity stock. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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Duration:
4m
Broadcast on:
21 May 2024
Audio Format:
mp3

Jim Cramer breaks down earnings from this cybersecurity stock. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake  

CNBC Investing Club Disclaimer

This episode is brought to you by AARP. Ten years from today, Lisa Schneider will trade in her office job to become the leader of a pack of dogs. As the owner of her own dog rescue, that is. A second act made possible by the reskilling courses Lisa's taking now with AARP to help make sure her income lives as long as she does. And she can finally run with the big dogs. And the small dogs, who just think they're big dogs. That's why the younger you are, the more you need AARP. Learn more at AARP.org/skills. Hey, it's Kramer and this is my morning take on the market from today's CBC Investing Club morning meeting. Let's jump to pal out to next. So the company reported last night, it was very in line. I think it was just a very in line, quarter, billings up 3.4%, missed estimates by five million dollars. That's with the earnings beat by seven cents. They bought back at 1.7 million shares for 500 million. Q4 guidance in line though, but I would think that the tone of this call was much different from what we heard in the past couple calls. Where this was more of about Palo Alto, I think playing offense, securing large deals, some early signs that the platformization strategy is working. He's still saying don't look at billings because of the high costs and money changing the duration of contracts. Look at RPO, RPO actually ticked up in the quarter of 23%. Yeah, you would think that it went down from all the chatter. Right. You know, just talking about platformization, there was obviously one of the biggest hacks of all time in the quarter, United Healthcare. They chose Palo Alto and when Palo Alto explained to them the benefits of platformization, they adopted it. So I think that's a nice thing. Do you see how much more they make on a platformization customer? Ten times what they make from a nod. Sure, because they're selling so many more different products. Yeah, you can get that bogged out on the billings. I'm never going to tell you that something is plus three in the universe where we have companies that are plus forty of this. You can go with the profitless company. It's soft. Right. But I'm also going to point out that there was a moment in time when you heard if there was a giant hack like United Health, whoever got that deal stock would go up twenty five percent. And I think that this is not, I think this is reasonable because it went up last week. It's why we sold so. Yeah, at three thirteen, you know, it's four dollars below that price. But to your point, it's up nearly twenty percent since the sell off last quarter, which is obviously that decline. You can see it's pretty obvious there. But I like to what you said about a significant pipeline of deals heading into their largest quarter of the year. And then again, it wasn't a cut to the four year billings. They narrowed it, but it kind of ends this streak of cuts that they unfortunately had. So stock's down four and a half percent. It looked worse last night, but again, the call was a lot more upbeat. Start your day with my outlook on the market. Every morning, visit cbc.com/morningtake to become a CNBC investing club member at a special rate today. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC investing club are solely Kramer'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 Kramer 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 Kramer. 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 Kramer. To view the full CNBC investing club disclaimer, please visit cnbc.com/investingclubdisclaimer. Norman, we need to pause this surgery. What, doctor? 'Cause Xfinity Mobile just got even better. Now you're automatically connected to Wi-Fi speeds up to a gig while you're on the go. Plus, Xfinity internet customers can buy one unlimited line and get one free for a year. Visit xfinitymobile.com to learn more. Offer N621. Restrictions apply. Xfinity internet service and two nil limited lines require. Reduce speeds after 30 gigabytes of usage per line. Data threshold by vary. Actual Wi-Fi speeds vary, not guaranteed. [BLANK_AUDIO]