Was Jim Cramer Right About Microsoft (MSFT)?

We recently published a list of Did Jim Cramer Hit or Miss On These 13 Stock Predictions? In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other stocks that Jim Cramer discussed during the episode of Mad Money on May 1st, 2024.

During the Mad Money episode which aired on Tuesday, Jim Cramer discussed how stock ownership is viewed in the United States, saying:

“Alright, look, lately, we can’t go a day without hearing some widespread misperceptions about stock ownership. I gotta tell you, I think it’s infuriating. Here we are celebrating the 20th anniversary of Mad Money, dedicated to the proposition that you can potentially make lots of money by picking individual stocks, yet I keep hearing that most Americans don’t care about the stock market, and this direction means nothing.”

READ ALSO:  How Did Jim Cramer’s 12 Bold Predictions Play Out? and Did Jim Cramer Nail All These 9 Stock Predictions?

Jim Cramer challenged the idea that the stock market only serves the wealthy, calling it a flawed and dismissive perspective that overlooks the financial involvement of millions of ordinary Americans, saying:

“It’s the whole reason anyone watches the darn show, and it generally matters, not just to the rich, but to tens of millions of regular people, home gamers, and never let any politician tell you otherwise. […] More than 60% of Americans have some exposure to the market, either directly or indirectly. 70 million people have active 401Ks. Millions more have retired with them. 60 million people have IRAs. Only 156 million people voted in November. I mean, we’re talking half the electorate here.”

Cramer argued that stockholders make up a major segment of the population and should not be ignored. He stated, “It’s not just arrogant, rich people who own stocks.” He also criticized affluent individuals who caution others against investing in stocks while continuing to benefit from their tax advantages. As he put it:

“Now look, stocks are ridiculously tax advantaged, more than just rich people want that. In a world where probably no more than 10% of this country can retire on their paycheck savings, stocks represent a different kind of social security, a one-sided pack where people try to save and the government dismisses them.”

Methodology

For this article, we compiled a list of 13 stocks that were discussed by Jim Cramer during the episode of Mad Money on May 1st, 2024. We then calculated their performance from May 1st, 2024, market close to April 30th, 2025, market close. We have also included the hedge fund sentiment for the stocks, which we sourced from Insider Monkey’s Q4 2024 database of over 900 hedge funds. The stocks are listed in the order that Cramer mentioned them.

Please note that this article mentions Jim Cramer’s previous opinions and may not account for any changes to his opinions regarding the stocks that are mentioned. It is primarily an examination of how his previously provided opinions have panned out.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Was Jim Cramer Right About Microsoft Corporation (MSFT)?

A development team working together to create the next version of Windows.

Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT), the tech giant, was identified as a must-own stock despite recent declines, due to its strong earnings and strategic AI leadership. Here’s what Jim Cramer said at the time:

“This thing is just getting killed! It had fallen the level below where it was trading before that amazing quarter. I think there’s nothing better than owning Microsoft right now, and you gotta check that box as my charitable trust has.

The company’s shares have risen 8.64% over the past months, not entirely validating Cramer’s bullish outlook.

The Mad Money host recently highlighted Microsoft Corporation (NASDAQ:MSFT)’s importance and said the following:

“After the close, alright, here we go, Meta Platforms and Microsoft, both important, and the Street’s really split on these two… Microsoft’s disappointed investors three straight times, three quarters in a row, mostly by issuing soft outlooks after delivering solid results. Now I think we need to see this Copilot gain some serious traction while data center spending stays strong, but not too strong. We don’t want them to spend even more than they thought, and Azure, its cloud business, gets back into an accelerated group. That might be a tall order, but I think this company knows the penalty will be severe to its price to earnings multiple, the PE multiple, if it misses a year’s worth of earnings reports.”

Overall, MSFT ranks 9th on our list of stocks that Jim Cramer discussed during the episode of Mad Money on May 1st, 2024. While we acknowledge the potential of MSFT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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