Jim Cramer said Panw stock has been doing what it often does before an earnings report: running higher into the quarter and then, after the numbers hit, getting knocked back by profit-taking. He said the same pattern could play out again after Palo Alto Networks reports results after the close, even with the stock already trading just over $210.
That makes the move in Palo Alto Networks a live trading story today, not just a long-term cybersecurity debate. Cramer said the company sits in a more extreme threat environment than it has in recent quarters, which helps explain why investors keep paying attention to the name ahead of the report. Palo Alto Networks, listed on the NASDAQ as PANW, sells cybersecurity platforms spanning network protection, cloud security, AI-driven security operations, attack surface management and subscription-based threat prevention.
The case for the stock looked strong on the chart, Cramer said. He pointed to a strong uptrend going back to late February and said every pullback in recent months had been met with a pretty terrific buying opportunity. He added that the latest rally broke above a resistance ceiling tied to the early December high, and that it did so on strong volume. The MACD line, he said, flashed a clear bullish crossover, while the Chaikin Money Flow showed incredibly aggressive institutional buying. “The big boys are suddenly buying this thing hand over fist,” he said, adding that the move shocked him and made him feel very confident about the stock.
Cramer also said Lang saw Palo Alto Networks heading back to $235, a level that would move above its previous all-time high of $233 and change. He said the stock could later take another run to $275 or even $280, and noted that people were bullish on Palo Alto. He also singled out chief executive Nikesh Arora, saying he has done an incredible job.
The risk is that the same setup that has helped panw stock climb into the print could also set up the familiar post-earnings fade. Cramer has seen this one before: a run-up ahead of the report, then selling after the company delivers. With results due after the close, the next session will show whether the buying surge and technical breakout can overpower the habit of taking chips off the table once the numbers are out.
