Business · Markets · 4 hrs ago

Cramer says investors are unfairly punishing some tech stocks

Cramer says investors are unfairly punishing some tech stocks

Jim Cramer says investors are wrongly selling some tech stocks when a rival company disappoints.

After Fortinet posted weak results, shares of cybersecurity companies Palo Alto Networks and CrowdStrike fell.

Cramer argues that Fortinet is more focused on hardware, while those competitors offer broader security products and services.

He says the price drops may reflect Fortinet's problems, not a slowdown across cybersecurity.

He sees similar spillover in software and semiconductors, where disappointing results or forecasts from ServiceNow, Alphabet and Samsung weighed on other companies, including Workday, Salesforce, Microsoft and Micron.

Stocks fell on Thursday, with the Nasdaq down 1.4%, as investors assessed company earnings.

Cramer says investors should look closely at what each business does before deciding whether a drop is justified.

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What people are saying

Jim CramerCNBC “Mad Money” host
My motto: do the homework, know what the companies really do
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Their stocks should be bought, not sold, because Fortinet's weakness is not a tell about a slowdown in cybersecurity; it's just a sign that Fortinet itself isn't doing well
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Some of these guilty verdicts are downright absurd
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