Jim Cramer said Palo Alto Networks “tends to run into the quarter,” then faces profit-taking after results. He also pointed to an uptrend, a bullish MACD crossover, and “incredibly aggressive institutional buying,” while highlighting CEO Nikesh Arora’s perform
For Palo Alto Networks, the calendar matters as much as the chart.
Jim Cramer, focused on the cybersecurity company in Mad Money’s latest game plan for the week, framed the next move around what he called a familiar pattern: the stock often pushes ahead before quarterly results, then gets hit with profit-taking once the numbers land.
“After the close. we get results from Palo Alto Networks. ” Cramer said. adding that the company he owns for the Investing Club has shown that rhythm before. “This stock tends to run into the quarter. and then when it reports. we get hit with some profit-taking.” He suggested the same sequence could play out again. while warning that the cyber threat situation is “more extreme now than it’s been in the last few quarters.”.
That timing pitch comes against a backdrop of how Cramer describes Palo Alto Networks behaving technically—particularly since late February. He highlighted an uptrend he believes is built from “a series of higher highs and lower highs.” In his telling. the most recent rally pushed the stock past a resistance ceiling dating back to the early December high. and he said the breakout came with strong volume.
Cramer also leaned on a momentum-and-flows approach to explain why he thinks the market’s conviction is unusually strong. He called volume “like a polygraph. ” arguing that moves on high volume “means the move is usually telling the truth.” He then pointed to the moving average convergence divergence. or MACD line. saying it’s showing a “clear bullish crossover.” In his description. the black line crossing above the red is “among the most reliable indicators that there are. very positive.”.
Down at the bottom of his screen. he brought up Chaikin Money Flow—CMF—saying it indicates when big institutions are buying or selling. “Right now, it shows incredibly aggressive institutional buying in Palo Alto Networks,” Cramer said. “That’s really kind of extraordinary. The big boys are suddenly buying this thing hand over fist. That shocked me, made me feel very confident about the stock.”.
At the time of the remarks. the stock was “just over $210.” Cramer said Lang expects it to move back to $235. describing that as a target that would be above the previous all-time high of $233 and change. He added that the stock would “take a breather” first—then look for another run, possibly toward $275 or $280.
The optimism didn’t stop at the chart. Cramer also talked about options activity. saying “People are bullish on Palo Alto.” He tied that tone to the company’s leadership. praising CEO Nikesh Arora and calling his work “incredible. ” saying: “I cannot blame them. This is Nikesh Arora. He’s done an incredible job.”.
Taken together, Cramer’s message is a blend of expectancy and caution. He sees a stock with strong upward structure and what he describes as aggressive institutional demand—but he also expects the quarterly report to bring its own test. because profit-taking is part of the script once the results hit.
Palo Alto Networks PANW Jim Cramer Mad Money cybersecurity quarterly results profit-taking MACD Chaikin Money Flow institutional buying Nikesh Arora options