Shares of the cyber-security provider were down 16% on Wednesday morning, after the company late on Tuesday gave a disappointing earnings outlook for the year and posted a loss of 51 cents per share for the third quarter. Still, the loss was higher than estimates, and revenue almost tripled.
The lack of execution from management and poor forecast, though, prompted Cramer, the co-manager of the Actions Alert PLUS portfolio, to be negative on the stock following the company's financial report.
"I did not like the quarter," he said, "but I like cyber security." His previous pick, Palo Alto Networks (PANW) , is a well-run company, although Cramer believes the stock has run too far, too fast and he is not a buyer now.
TripAdvisor (TRIP) also disappointed investors with its results. Its revenue for the third quarter topped analysts' estimates, but earnings fell short.
The company hit investors with a "triple-whammy," Cramer explained, reporting a "weak quarter, lower growth and bad margins." Investors should stay away from the stock.
Even Priceline.com (PCLN) reported disappointing results. Investors don't usually expect to hear negative commentary from the company, but weakness in Europe is weighing on its performance, Cramer said.
-- Written by Bret Kenwell