How Jim Cramer would approach Palo Alto's stock heading into earnings

Every weekday, the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Tuesday's key moments. 1. The S & P 500 touched fresh record highs on Tuesday, driven by Nvidia and other chipmakers. However, Jim Cramer said he is unimpressed by the parabolic moves in the AI trade, pointing to Marvell Technology's 29% surge on Tuesday after Nvidia CEO Jensen Huang said it would be the next trillion-dollar company. "I don't like that level of enthusiasm," Jim said, noting that these moves draw money away from other sectors. 2. Shares of Alphabet are down over 2% after the Google parent announced plans to sell $80 billion in stock to fund its AI buildout, including a $10 billion investment by Berkshire Hathaway . Alphabet's plan to raise half of its capital using an at-the-market (ATM) strategy — in which a company incrementally sells newly issued shares into the secondary market over time to raise capital — is not a win for investors looking to buy the stock, Jim said. "You're not going to be able to get the stock really rolling because as soon as it starts rolling, they put [more] stock out. That's part of the problem with an ATM program." 3. Palo Alto Networks shares are down more than 1.5% on Tuesday, going into earnings after the close. The bar is high for the cybersecurity name, which has rallied more than 80% since the end of March. For this quarter's report, the company needs to show that AI is accelerating its business. …