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LivestreamMenuShortly after the opening bell, we will sell 25 shares of Palo Alto Networks at roughly $332. Following the trade, Jim Cramer’s Charitable Trust will own 220 shares of PANW, decreasing its weighting in the portfolio to 1.85% from 2.04%. We’re locking in triple-digit gains on Palo Alto Networks after the cybersecurity stock on Monday surged 9% to a new record high. For the year, shares are up about 80%. Shares of Palo Alto and fellow Club name CrowdStrike jumped Monday in reaction to a weekend story from the Wall Street Journal that said Chinese AI models have matched the performance of Anthropic’s Mythos in some cybersecurity scenarios. As we discussed in Monday’s Morning Meeting, if Chinese AI models are as capable as the best U.S. models at discovering vulnerabilities in code, they also become powerful tools for launching cyberattacks. The news highlights the importance of Palo Alto Networks and CrowdStrike, the two best-of-breed cybersecurity companies with full suites of solutions. They are best positioned to win business and gain market share as enterprises of all sizes shore up their defenses in the age of AI. Palo Alto CEO Nikesh Arora told Jim earlier this month the company was seeing a flood of calls from customers seeking guidance on how to prepare for rapidly evolving AI risks. We remain strong believers that AI will accelerate cybersecurity spending rather than disrupt it. But with Palo Alto having quieted that disruption narrative and shares more than doubling since the start of April, we’re taking the opportunity to lock in some of those gains. From this sale, we will realize a profit of about 147% on stock purchased in April 2024 (Jim Cramer’s Charitable Trust is long PANW and CRWD. 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.Read More
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