12 Stocks Jim Cramer Talked About

10. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holdings: 312

Software giant Microsoft Corporation (NASDAQ:MSFT)’s shares dipped by 7% in extended trading after it reported its fiscal third-quarter earnings report. The results saw the firm post $81 billion in revenue and $4.14 in adjusted earnings per share to beat analyst estimates of $80.27 billion and $3.97. Following the earnings, Stifel downgraded Microsoft Corporation (NASDAQ:MSFT) to Hold from Buy and slashed the share price target to $392 from $540. At the heart of the significant revaluation was the firm’s Azure cloud computing business. Stifel pointed out that Microsoft Corporation (NASDAQ:MSFT)’s fiscal 2027 guidance was optimistic, considering Azure supply constraints and competition in the AI industry. Before the earnings, Cramer wondered whether the firm’s Copilot platform was competitive, and after the report, he discussed Azure and equated Google’s Cloud head with Lebron James:

“Microsoft, someone, Stifel, downgraded Microsoft. Now a law was passed a distant Moon ago here, don’t you ever, ever, downgrade Microsoft. Could be a bottom. You downgrade Microsoft, they have a lot of firepower. Even if Copilot is losing out in terms of the, if you look at Gemini paid, Copilot’s obviously not that good. You know David, you have probably Apple, but you they want to involved, they try to trick you into Copiloting all the time, I’d rather be a passenger and ride in Gemini. I don’t need to Copilot jack.

“Now, Amazon has retail and that’ll help them, okay, but Azure is the one that I think is the existential crisis.

“I’m just saying it’s Azure versus Alphabet, that’s what I’m saying, and I’ve met Lebron James and he wants to annihilate Azure.”