Jim Cramer Looked at These 11 Stocks Recently

3. Microsoft Corporation (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer looked at. When a caller asked if the stock is a hold right now, Cramer remarked:

I’m very worried. I’m very worried about Microsoft… very worried. My Trust owns it. I gave a big talk on Friday… where I explained why I am very concerned about owning Microsoft and thinking that perhaps I should sell some, if not all. It would be a huge change for me, a gigantic change.

Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The company provides products like Windows, Azure, Office, LinkedIn, and Xbox. Cramer discussed the company’s stock decline during the February 6 episode and said:

That same night, we heard from Microsoft, and the market was not amused. Mr. Softee’s Azure cloud unit saw a deceleration of its revenue growth in part because they were sending essential NVIDIA chips to other parts of the business, including Copilot, so they couldn’t keep up with the Azure demand. Meanwhile, Copilot doesn’t seem to have much demand. They boasted that their AI platform has 15 million paid users, which sounded pretty pitiful to me, given the way that they cram this thing into every aspect of Microsoft Office.

Now, it didn’t help that Microsoft’s still spending a fortune on AI infrastructure, or that 45% of the remaining performance obligations, meaning bookings, came from OpenAI. I’m not too worried about OpenAI, but to many on Wall Street, it’s no longer seen as a reliable customer. And that’s why Microsoft’s stock fell nearly 10% the next day, and it’s kept falling until today, when it finally got a slight bounce. I think they need to explain their story better. Although with the stock now at 24 times earnings, it certainly seems more enticing. Happy to have them on the show to explain what’s going on here. It would certainly help.