Cramer: Palo Alto Networks joining S&P 500 is ‘not a reason to own it’
- Palo Alto Networks will replace Dish Networks in S&P 500 index.
- Jim Cramer discussed the news on CNBC's "Squawk on the Street".
- Palo Alto Networks stock is currently up about 40% for the year.
Shares of Palo Alto Networks Inc (NASDAQ: PANW) are up 5.0% this morning on news that the cybersecurity giant will join the S&P 500 index later this month.
Dish Networks will come out of S&P 500
Copy link to sectionOn Monday, S&P confirmed in a press release that the multinational will replace Dish Network as it executes quarterly rebalancing on June 19th.
The stock market news arrives just over a week after Palo Alto Networks reported market-beating results for its third financial quarter amidst concerns of a slowdown in spending on cloud computing. But CEO Nikesh Arora said on the earnings call:
We’ve been staying ahead with rigorous execution. We’ve increased deal scrutiny, gotten ahead of challenges, and continue to sharpen our business value focus while demonstrating superior security outcomes.
Year-to-date, Palo Alto Networks stock is up roughly 40% at writing.
Jim Cramer reacts to the news on CNBC
Copy link to sectionPalo Alto Networks marks the sixth addition to the benchmark index in 2023.
The California-based company will join “XLK” – the Information Technology sector of the S&P 500. Reacting to the development on CNBC’s “Squawk on the Street”, famed investor Jim Cramer said today:
Palo Alto Networks was just added to the S&P 500 which is a very big deal. My Charitable Trust has a big position in it but is this a reason to own it? No, it’s reason to show why it went up.
Wall Street currently has a consensus “buy” rating on this cybersecurity stock and sees upside in it to $237 on average – up about 4.0% from here.
