Hey, it's Kramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting.

Let's turn to Palo Alto. Another better than expected quarter. Revenue EPS above consensus.

They slightly raise their guidance for revenue in EPS, which is a good sign after the first quarter of a fiscal year.

Small beats in next-gen

security ARR, continued momentum in platformization, 16 net new in the quarter. Some big wins.

They had $100 million deal with a large telecom provider, $33 million deal with the U.S.

Cabinet Agency. They announced another acquisition, $3.35 billion for Kronosphere, so they're getting

it to observability. They're a leading solutions provider at a third of the cost, ARR, growing

triple digits. So they have that deal in the works. They're also on track to close CyberArk,

which is the biggest deal in company

history, identity security. And that has more ARR, annual, the recurring revenue, than Palo Alto's

going to move the ARR up and that's going to make it even easier for the analysts to like it.

So you have this. There will be people tomorrow who will defend it, and I think it goes right back. Yeah, a lot of defending already by a lot of the analysts talking about, you know, the good momentum they're seeing in the business. Interestingly, crowd strike on the move today, higher. They report in a couple weeks. So we'll see from them. Wow, it's a nice move. Yeah.

See that move. But it is interesting because with Cronosphere, they are saying this has kind of been

their playbook of they like to what they say is acquire businesses, assets right before they've

seen an inflection in the industry. They're doing that with CyberArc and Agentics and with Chronosphere.

They're saying the whole observability industry needs to change because of AI.

And you talked about...

Observability is like monitoring apps on the internet.

So he was describing a food delivery.

If an Uber app goes down, you can track that and implement a fix.

Cisco bought Splump to do the same thing.

...