Here’s why investors should not be selling one big tech stock and maybe buying another
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. Market bounces, Apple drags We trimmed CAT but still believe Watch Palo Alto 1. Market bounce, Apple drags The Dow and the S & P 500 bounced higher Monday following a down week on a slew of mixed earnings reports. The tech-heavy Nasdaq turned lower Monday, dragged lower by continued weakness in Club name Apple (AAPL) after underappreciated quarterly results out after the closing bell last Thursday. Investors have been taking profits on concerns about light iPhone sales despite blowout services performance. The world’s most tech-valuable company killed it on quarterly services revenue and installed device base numbers — two factors we consider more important than three months of product sales. Additionally, if history proves itself, shares will likely have a run-up ahead of another product launch in September. We maintain our own-it, don’t-trade-it stance on Apple. 2. Trimmed CAT but still believe We sold 25 shares of Caterpillar (CAT) on Monday in order to lock in some gains after the industrials giant surged 9% on a strong earnings report last week. We hold our conviction in Caterpillar as infrastructure investments continue to flood into the economy from the government’s $3 trillion stimulus plan. The Club’s trading restrictions prevented us from selling last Tuesday when shares reached the upper $280s. But given strength in the stock to start the new week, it still felt prudent to lock in some profits. 3. Watch Palo Alto Palo Alto Networks (PANW) plunged 12% last week — down 8% on Friday alone following sour news for industry peer, Fortinet , which issued weak forward guidance on macro uncertainty. The dip, which continued Monday, could be a solid buying opportunity for investors because of the company’s smart management, along with its potential to become the first cybersecurity firm to notch $100 billion market valuation. Palo Alto continues to find ways to shine despite headwinds and remains in a great industry to allocate to because it’s essential for businesses to invest in. (Jim Cramer’s Charitable Trust is long AAPL, CAT, PANW. 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.
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