Why our cybersecurity stocks are rebounding after getting hammered last week

CNBC Finance

3 min read

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Monday's key moments. 1. The S & P 500 is higher Monday after President Donald Trump said the U.S. was in "serious discussions" to end the war in Iran. But Jim Cramer said he wasn't ready to take Trump's comments as an all-clear sign to do some buying. "We're not committing capital into this," he said, explaining that the decision is in part due to an emerging pattern of Trump making one claim, only for Iran to later deny it. Earlier on Monday, we exited its position in Cisco to replenish our cash position after Jim's Charitable Trust made its annual charity distribution, which reduced our cash levels to roughly 6.5% from 15% . This year's distribution was nearly $300,000, bringing the Trust's total since inception to over $4.5 million. 2. Meta shares jumped over 2% after being named a top pick at Morgan Stanley. "It's time to buy Meta," analysts argued, noting the stock has fallen on concerns about its massive AI investments and, more recently, new regulatory risk following two separate court defeats last week in social media harm trials. Jim has said investors would regret selling Meta on regulatory concerns, and Morgan Stanley also told clients it believes these risks are manageable. As for worries about Meta's AI spending, Jim said Monday that Meta is right to aggressively add computing capacity in order to remain competitive versus the likes of Google's YouTube and TikTok. "I think you have to be respectful of the situation they find themselves in," Jim said. 3. Club cybersecurity names CrowdStrike and Palo Alto Networks are rebounding Monday after their stocks were crushed Friday on concerns over Anthropic's upcoming model release . CrowdStrike is up nearly 5% after Wolfe Research upgraded the stock to a buy-equivalent rating. Analysts said more capable AI models will force organizations to bolster cyber defense, not erode their businesses like the sellers appear to believe. Morgan Stanley also reiterated CrowdStrike as a top pick. Meanwhile, Palo Alto Networks jumped about 7% after CEO Nikesh Arora purchased about $10 million worth of shares Friday, sending a strong signal to the market that he believes the stock is undervalued. "I think the market's getting a lot of things wrong," Jim said. 4. Stocks covered in Monday's rapid fire at the end of the video were: Sysco , Alcoa , Expedia , and Colgate . (Jim Cramer's Charitable Trust is long META, CRWD, PANW See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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Why our cybersecurity stocks are rebounding after getting hammered last week

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