Squawk on the Street CNBC Investing Club: Cramer’s Morning Take on CrowdStrike 2/3/26
Feb 3, 2026
They discuss a market rotation that favors consumer goods, industrials and utilities while tech sees outflows. Software and cyber stock sell-offs are parsed, with specific names highlighted. A prominent cybersecurity company is presented as a potential buy after a big pullback. A short buy list and conviction behind the calls are reviewed.
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Market Rotation Is Driving Sector Performance
- The market is currently bifurcated with money rotating from tech into other sectors like industrials and utilities.
- Jim Cramer highlights that cyber names are being sold with broader software weakness, but the rotation is sector-driven.
Trim To Buy Cybersecurity Weakness
- Trim holdings selectively to raise cash for buying into beaten-down but fundamentally strong names like CrowdStrike.
- Jim Cramer says to let the pullback come in and view the decline as a buying opportunity.
CrowdStrike Is Levered To Cybercrime, Not Software
- CrowdStrike's exposure is to cybercrime risk rather than to general software demand, making its fundamentals distinct.
- Cramer argues that declines tied to software baskets may misprice cyber-specific companies.