Cramer calls the CrowdStrike and Palo Alto selloff mechanical profit-taking
As seen on the 24/7 Wall St. homepage on September 2, 2026.
Cramer is calling the selloff in the two largest pure-play cybersecurity names mechanical profit-taking rather than a break in the growth story, a read worth testing against Barclays' warning that the group has run out of room.
Crowdstrike and Palo Alto will come back.... huge wave of profit-taking
- Replies25
- Reposts3
- Likes61
Continue ReadingShow less
Jim Cramer posted on September 2 that the pullback in the two largest pure-play cybersecurity names is mechanical profit-taking rather than evidence that the growth story has cracked. That framing matters because it separates traders locking in gains from investors signaling a genuine change in outlook for the sector.
The post drew dozens of replies and likes, a level of engagement that suggests the read is being actively debated rather than widely accepted. Where Cramer sees a temporary flush, skeptics can point to the Barclays warning noted in the editorial commentary that the group has run out of near-term room to run.
Sponsored
_________________________________
What's Your Number...?
Here's a question most people 5y from retirement can't answer: at your current savings rate, how much do you need, and how long will it actually last? A good advisor can put a date on that in a single meeting. SmartAsset's free quiz matches you with up to three fiduciary advisors serving your area, so you can get YOUR retirement number now (sponsor)
__________________________________________
Profit-taking as an explanation is neither bullish nor bearish on its own: it simply argues that sellers are motivated by accumulated gains rather than deteriorating fundamentals. The question investors need to answer is whether fresh buyers step in at current levels or whether the selling begets more selling.
What to watch is whether either stock stabilizes and reclaims recent highs, which would validate Cramer's read, or whether the pullback deepens in a way that draws in fundamental sellers alongside the profit-takers. The divergence between those two outcomes will shape the near-term setup for the broader cybersecurity group.