Why Jim Cramer Stands by Defense Sector and 19 Stock Calls

9. Microsoft Corporation (NASDAQ:MSFT)

Microsoft Corporation (NASDAQ:MSFT) is among Jim Cramer’s recent stock calls as he urged investors to stand by the defense sector. A club member asked if they are diversified enough, and mentioned that AMZN, MSFT, NFLX, SAP, and SONY are their top 5 holdings. In response, Cramer said:

Alright, well, we’re going to have to do a little switch-up here. I know that a lot of people don’t want to hear it, but you see, Microsoft, I’m going to say that Microsoft’s too close to SAP, alright, because we’re having a lot of problems with both these companies. And I’m going to do something that actually is a little sacrilegious. I’m actually going to say we gotta get rid of both of them. They’re just not trading like, the way I want them to. Microsoft’s doing terribly. SAP doing terribly, but the companies themselves aren’t doing that bad. But I want you to be able to preserve some capital. I want a healthcare in here, okay? I want JNJ in this portfolio right now, ahead of the quarter. And I want a defense company, and here I’m going to put in RTX.

I think both are going to be better for you, and it’d be much more diversified that way. You’d have a pharma. You’d have the amazing conglomerate now that Amazon is, because it’s retail, but it’s also a lot of tech. We’re going to let Sony be in, and this is, look, I’m not, you know, it’s tough because you could say Netflix and Sony are the same, but Sony got movies, Netflix, we’re going to call it an entertainment company. But come to think of it, I would even have to swap out Sony. I’m sorry, I have to do so much work, but I’m trying to get people into GE Vernova, GEV, get a little data center. So I’m sorry to have to do such emergency surgery.

Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The company provides products like Windows, Azure, Office, LinkedIn, and Xbox.