Palo Alto Networks' (PANW) -) stock fell hard throughout August, after the company said it would be reporting earnings on a Friday after the market close.
Shares of the cybersecurity leader fell as low as $207 a share in the tense lead-up to the earnings report, with many analysts convinced that the rare Friday evening schedule meant that bad news was on the horizon.
The reality, though, was that CEO Nikesh Arora decided to report earnings after the close on Aug. 18 owing to a simple scheduling conflict, according to CNBC's Jim Cramer.
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PANW shares shot up more than 15% Monday in the wake of stronger-than-expected earnings per share of $1.44, compared with the consensus analyst estimate of $1.28 a share. Revenue, up 26%, came in a bit light: $1.95 billion compared with the expected $1.96 billion.
"There was a widespread belief that the quarter had to be terrible because why else would they report on a Friday night? But I trusted Nikesh, which was why we stuck with Palo Alto for the trust," Cramer said Monday.
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Cramer defied the naysayers on Palo Alto Networks
The host of "Mad Money" said he was "overwhelmed" with people urging him to tell his viewers to give up on Palo Alto Networks. But he refused, saying that the stock was performing well not just because of strong earnings but because of the litany of investors who were shorting it. Short sales are bets that a stock's price will fall.
"Professional money managers couldn't bring themselves to trust one of the best CEOs in the business, one of the best CEOs I've ever met," Cramer said, adding that Arora "totally knew what was going on and he snookered all those who felt 'this can't be true.'"
"It was one of the most impressive conference calls that I've ever been on. Those who are short the stock today are sending me an invitation to their funeral."
Shares of Palo Alto at last check were off 2.6% at $234.65.
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