Microsoft Regains Jim Cramer's Confidence After Strong Earnings Report
Jim Cramer has reversed his stance on Microsoft following the company’s strong quarterly earnings report. The stock surged over 17% to nearly $458 per share after reporting robust Azure cloud growth and no plans for increased AI spending, addressing prior concerns about disruption from artificial intelligence and reliance on OpenAI. Microsoft's Productivity and Business Processes unit saw an 18% sales increase, while Copilot reached more than 30 million paid seats. Azure revenue rose by 43%, driven by a broader customer base beyond frontier AI developers like OpenAI. The company also maintained its capital expenditure outlook for 2026, contrasting with Meta and Alphabet's recent spending increases that led to stock declines. Despite the rally, Microsoft’s shares are still down year-to-date. Cramer remains bullish on the stock, believing it has transitioned from being
Topics: AI spending guidance Azure cloud growth Jim Cramer commentary Microsoft