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).

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 ( 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, 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.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

If you liked this article you might like

Cisco Could Be in Line for Some Big Changes With John Chambers' Exit

Equifax CEO and Board Are Pretty Cozy

Pret A Manger Takeover in the Works; Cisco's M&A Shackles Come Off - ICYMI

John Chambers' Exit From Cisco Could Pave the Way for Big Moves

Equifax Is a Disaster, Jim Cramer Says