TheStreet's 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 Salesforce.com (CRM) 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 Red Hat (RHT) 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 VMware (VMW). -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV