Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer shared his thoughts on. Cramer called the company’s CEO and CFO “smart.” He said:
Meanwhile, Microsoft, perennial rock, isn’t spending enough to meet the demand for AI, or at least in the right places, because it seems to be putting its resources behind the wrong stuff. They’ve become the scissors, and they got crushed, down 10%. Truly horrific, horrible to watch… It’s tough to watch this great business, this rock, play the scissors. There’s so many amazing things about this company, which has dominant software for 40 years, has been unassailable until last night when we heard, frankly, a convoluted story… It said that Microsoft isn’t going to spend enough money to meet its artificial intelligence demand. But at the same time, it was proud that it had 15 million paid users of Copilot. 15 million. Wait a second.
They have 1.5 billion users. They were proud of that 1% of these people who pay to use Copilot. How many use Clippy? What does it tell you? How about that maybe Copilot just isn’t that big a winner? It’s like Microsoft makes dog food that the dogs don’t want, right? And somehow, they think if they slap new and improved on the side of the can, the dogs will clamor for it. Dogs can’t read… When I listened to the conference call, I could only conclude one thing. Unlike Meta, Microsoft may not be making all that money on AI even after all the massive investments in OpenAI and all that stuff. Certainly less than expected…
Is it time to give up on Microsoft? What are you, out of your mind? Absolutely not. Remember, this is Microsoft. Remember the game. Meta morphed from loser to winner in one quarter. Microsoft can do the same. It’s just gotta, kind of have to bite the bullet here. I haven’t bought this stock for my Charitable Trust in two years. We have a sizable position, don’t need to. But I’m betting that next time around, Microsoft could come out on top, and I’m looking at a level to buy Microsoft. Satya Nadella and CFO Amy Hood will figure it out. They’re smart.
Image by Tawanda Razika from Pixabay
Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The company provides products like Windows, Azure, Office, LinkedIn, and Xbox.
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Disclosure: None. This article is originally published at Insider Monkey.
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