NEW YORK ( TheStreet) -- While cloud computing has done quite well in 2013, the group is now being sold off after a pre-announcement earnings warning from Citrix Systems (CTXS).
Jim Cramer told Debra Borchardt the company picked a terrible time to pre-announce such bad news with the market's strong rally on Thursday. He added that this group would have done very well today, and suggested
could be up as much as 6% or 7%.
According to an analyst channel check on Citrix Systems, sales were strong in June, but began weakening in July. The slowdown continued through August and September and is expected to be quite poor with the government shutdown.
Cramer said Citrix Systems and
both do a lot of government business and the shutdown does not help them. However, Salesforce.com doesn't rely on the government's business -- at least, that of the U.S. It does do business with the Japanese government, which has been strong, but also creates currency headwinds.
Cramer concluded that he wouldn't buy Citrix Systems, which is unfairly casting a negative shadow over the entire cloud industry. Instead he is a buyer of
-- Written by Bret Kenwell in Petoskey, Mich.