CNBC’s Jim Cramer is disappointed with Microsoft’s latest quarter, but also sees some positives. With the stock down 5%, Microsoft’s report Wednesday evening was overall “not encouraging,” Cramer said on “Squawk on the Street.” It has fallen more than 16% since the beginning of the year. In fact, Cramer ranked Microsoft’s performance near the bottom of Alphabet, Meta and Amazon, which released their quarterly results after Wednesday’s close. He let Meta die in the end. “I don’t think there’s a need to buy Microsoft here,” Cramer later said on CNBC’s Investment Club morning meeting. The tech giant is Club Holdings. MSFT YTD Mountain Microsoft YTD The software and cloud giant delivered a better-than-expected quarter and issued strong guidance for its key Azure cloud business. Microsoft predicted Azure cloud growth would be between 39% and 40%, higher than the market consensus of 37%. Cloud revenue increased by more than $54 billion in the quarter, an increase of 29% year-over-year. “A lot of people were excited about it (the Azure guidance), but it turned out there were a lot of aspects of Microsoft that felt like just software,” Cramer said. As a result, the stock was in tatters. One of the main concerns is the sheet-based business model of Microsoft’s Office suite, which Wall Street largely believes is under threat from AI coding. Those concerns alone aren’t enough to assuage the bullish sentiment on Microsoft stock among most Wall Street investors. “I couldn’t believe it,” Cramer said, pointing to the numerous positive post-earnings reactions and buy ratings from Street analysts including Bank of America, Morgan Stanley and Goldman Sachs. Mr. Kramer reiterated his position. “I have no interest in buying Microsoft.” Jim Cramer ranks hyperscalers’ earnings Alphabet is a winner, with more upside expected Amazon rises another 15% and won’t stop there Microsoft’s earnings are far from impressive. Here’s why I’m afraid of Meta’s plummeting business results and won’t let go of my shares.
