Hack of nude celeb photos shows need for cybersecurity: Cramer

Cramer's Stop Trading: Focused on PANW
Cramer's Stop Trading: Focused on PANW

A widespread hack of celebrity nude photos shows the need for increased cybersecurity, CNBC's Jim Cramer said Tuesday.

Nude images of actress Jennifer Lawrence and model Kate Upton have surfaced online, part of a reported mass hacking of celebrities' Apple iCloud accounts, according to NBC News.

Images purporting to be of dozens of other female actresses, models and athletes were also posted. The authenticity of many could not be confirmed.

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Jim Cramer
Adam Jeffery | CNBC

"We've got to focus on security because it just doesn't stop, right? I mean, whether it be Jennifer Lawrence or whether it be Chinese hacking," Cramer said on "Squawk on the Street." "There's one company that's one step ahead of the posse and that is Palo Alto Networks."

Read MoreApple: 'Actively investigating' celeb photo hack

The Santa Clara, Calif.-based company, which provides firewalls and other network security services, is Cramer's "favorite" cybersecurity stock. He praised the leadership of CEO Mark McLaughlin, who he called the "smartest man in the world right now, in terms of hacking."

"It's hard for me to see how it doesn't go to $100," he said.

—By CNBC's Drew Sandholm. Reuters contributed to this report.

DISCLOSURE: When this story was published, Cramer's charitable trust owned Apple. It did not own Palo Alto Networks.