Why our cybersecurity stocks are soaring, plus Big Tech tries to rebound
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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 rose Monday as stocks rebounded from last week's pullback. West Texas Intermediate crude advanced to about $70 per barrel after Iran and the United States traded strikes over the weekend. The two nations agreed on Sunday to pause hostilities and allow commercial vessels to cross freely through the Strait of Hormuz. President Donald Trump said on Truth Social this morning that a meeting with Iran is planned for tomorrow in Doha, Qatar. "That [news] is keeping oil in check," said Jeff Marks, director of portfolio analysis for the Club. Jeff added that if oil can stay below $70 per barrel, it will help keep bond yields stable as well. Aside from that, Honeywell completed its split with Honeywell Aerospace today, resulting in the Club receiving 220 shares of the new company. 2. The portfolio's hyperscalers â Amazon , Microsoft, Meta, and Alphabet â are seeing some strength today after sharp declines last week. The declines were the result of the memory and storage squeeze, which is driving up prices for hyperscalers and AI-related capital expenditure. In this week's Sunday Column , Jim Cramer said megacaps are victims of shifting market dynamics and discussed how they can regain the market's good graces. 3. Shares of Palo Alto Networks rose around 7.5%, hitting a new intraday high. CrowdStrike also jumped over 6%. Jeff said the positive gains in the Club's cybersecurity names could be related to a Friday Wall Street Journal report that Chinese AI systems have matched Anthropic's Mythos in finding cybersecurity vulnerabilities. If the Chinese models can find vulnerabilities, they can also exploit them, Jeff said. "You're going to want some cybersecurity defense if you're an enterprise because these new updated models will make attacks even more sophisticated." (Jim Cramer's Charitable Trust is long PANW, CRWD, HON, HONA, GOOGL, MSFT, META, and AMZN. 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.
