CNBC Investing Club: Cramer’s Morning Take on CrowdStrike 8/27/26

Key takeaways

CrowdStrike reported strong quarterly growth, with 26% revenue increase and a 51% rise in new ARR, driven by AI integration and security solutions.
The company's low cloud penetration presents significant growth opportunities across enterprise markets.
CrowdStrike's upcoming Falcon trade show will showcase new security innovations, especially related to AI threat mitigation.
Market reaction to CrowdStrike’s earnings has been positive, boosting related stocks like Palo Alto and Work.
Despite current market skepticism, Jim Cramer believes CrowdStrike’s stock is undervalued and has room to go higher, supported by strategic partnerships like with Anthropic and ongoing demand for cybersecurity solutions.

Summary

Market Overview and CrowdStrike's Earnings

Jim Cramer previews the market with a focus on CrowdStrike, highlighting its strong quarterly results featuring a 26% revenue increase and significant growth in net new ARR (51% YoY to $330 million). He emphasizes the company's advances in AI integration, security, privacy, and data protection, especially with upcoming demonstrations at their Falcon trade show. Cramer underscores the company's low penetration in the cloud security space and its potential for continued growth, noting that competitors like Palo Alto are also benefiting from CrowdStrike’s success.

AI and Security Innovation at CrowdStrike

CrowdStrike is leveraging AI in their security solutions, particularly in combating threats from rogue agents. The company is expanding its business lines with projects like Falcon and QuiltWorks, aimed at enhancing security against malicious AI use. George, a leader at CrowdStrike, expresses confidence in the durability of current demand due to the low adoption rate of cloud-native solutions among enterprise clients, of which 80% remain to be cloud-integrated. This positions CrowdStrike for further growth and market penetration.

Other Notable Stock Movements and Market Sentiments

Jim Cramer discusses other tech stocks like Palo Alto and Work, which are reacting positively to CrowdStrike’s earnings. He also touches on a surprising interest in their earnings from sales and the Anthropic partnership, which has caused some trading activity. Despite some bearish sentiment and short positions, Cramer remains optimistic about the potential for higher stock prices, calling the current situation a 'very cheap' opportunity that might demonstrate further upside.

Show notes

Cramer says he would still be a buyer of this cybersecurity stock. Become an Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks every day as they talk candidly about the market’s biggest headlines, analyst calls and holdings in the Charitable Trust – and see up close how they decide when, and if, to take action on stocks. Sign up here: cnbc.com/morningtake

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