Jim Cramer Highlights Microsoft’s $4 Trillion Moment and AI-Driven Strength

Microsoft Corporation (NASDAQ:MSFT) is one of the stocks that Jim Cramer spoke about. During the episode, Cramer discussed the company’s recently posted strong earnings. He said:

“What should it have been about? Well, how about Microsoft? How about Meta? Nope. They were overshadowed by the Fig-Man Carnival. It was all anyone talked about down here. Call me old-fashioned, but I really wanted the market today to be defined by those earnings reports from two tech titans. I’m talking about Microsoft, briefly a $4 trillion company today, before closing just below that level, and Meta at just under $2 trillion. I wanted these to be foundational…

I wanted it because they smashed estimates. I mean, they crushed them by billions of dollars. These were marvels. They did so because they spent fortunes on artificial intelligence, something which many thought to be foolhardy, but it turns out to be they didn’t spend enough. Microsoft shocked people by obliterating the earnings estimates, now sells at roughly 35 times earnings… Given how spectacular these reports were, it was natural, totally natural for the stocks to go up. Microsoft gained nearly 4%…

I say they’re still too cheap, and most national economies are an inflation-binging joke anyway. I’ll take their balance sheets over any country in the whole world. We pay 35 times earnings for Microsoft, 29 times earnings for Meta, because we look at the benchmark, the valuation, the S&P 500, and the aggregate, that sells at 24 times earnings, then we try to assess how much better Microsoft and Meta are than the average stock, and they are really better.”

Pixabay/Public Domain

Microsoft Corporation (NASDAQ:MSFT) provides software, cloud services, devices, and AI-driven tools across productivity, business applications, and personal computing. The company’s major platforms include Microsoft 365, Azure, LinkedIn, Xbox, , and WGitHubindows.

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Disclosure: None. This article is originally published at Insider Monkey.