Jim Cramer on Palo Alto: “This Stock Tends to Run Into the Quarter”

After the close, we get results from Palo Alto Networks. That’s a cybersecurity institution that we ain for the Investing Club. This banal tends to tally into the quarter, and past erstwhile it reports, we get deed with immoderate profit-taking. It’s imaginable we tin spot the aforesaid signifier again. It’s been the mode of Palo Alto, but the cyber menace concern is much utmost present than it’s been successful the past fewer quarters. Let’s spot what happens.

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Palo Alto Networks, Inc. (NASDAQ:PANW) provides cybersecurity platforms that see web protection, unreality security, AI-driven information operations, onslaught aboveground management, and subscription-based menace prevention. During the May 11 episode, Cramer noted that the institution CEO is doing an “incredible job,” arsenic helium stated:

Okay, we’re going to commencement with the regular illustration of Palo Alto Networks, which I ain for the Charitable Trust and have, again, for ages. It’s Lang’s favorite. He knows that Palo Alto’s been successful a beardown uptrend… with a bid of higher highs and little highs… going backmost to precocious February. In the caller past, each pullback present has been met with a beauteous terrific buying opportunity, and the stock’s latest rally allowed it to interruption retired supra its ceiling of resistance, going backmost to the aboriginal December high, and it made that determination connected beardown volume… Remember, erstwhile we deliberation astir this, the measurement is similar a polygraph. When a banal moves connected precocious volume, it means the determination is usually telling the truth.

…When you look astatine the moving mean convergence divergence oregon the MACD line… This is an important momentum indicator. It tin assistance foretell the stock’s trajectory. It throws disconnected a wide bullish crossover close here, okay? That’s wherever the achromatic enactment crosses supra the red, and it’s among the astir reliable indicators that determination are, precise positive. And there’s a happening called the Chaikin Money Flow, the CMF, named aft Mark Chaikin, down astatine the bottom, which tells you erstwhile large institutions are buying oregon selling. And look astatine this, look astatine this. Right now, it shows incredibly assertive organization buying successful Palo Alto Networks. That’s truly benignant of extraordinary.

The large boys are abruptly buying this happening manus implicit fist. That shocked me, made maine consciousness precise assured astir the stock. Now, the stock’s presently conscionable implicit $210. Lang thinks it’s headed backmost to $235, that’s large quality for the Charitable Trust, supra its erstwhile all-time precocious of $233 and change. We’re taking a breather then. Then it’s going to instrumentality different run, possibly to $275, $280… He besides likes the enactment flow… People are bullish connected Palo Alto. I cannot blasted them. This is Nikesh Arora. He’s done an unthinkable job.