Microsoft Corporation (NASDAQ: MSFT) was among the stocks Jim Cramer discussed on Mad Money, as he highlighted several companies with market caps over a trillion dollars.
Cramer explained why his Charitable Trust continues to hold the stock, despite reservations about certain parts of the business.
“Now, here’s a tough one, Mr. Softee, Microsoft,” Cramer said. “It has a terrific cloud business, but it’s weighed down by enterprise software, and Wall Street disdains its AI product, Copilot.”
Cramer questioned his own reasoning for holding the position, asking “Did I go to college to get stupid?” before defending the decision with conviction.
“We simply cannot believe that Microsoft won’t fix things,” Cramer said. “It has so much money, it has so many smart people, I have to believe they can figure it out.”
Cramer added a conditional note, stating: “If they can’t, then the stock will have to go.”
During an earlier episode on May 5, Cramer grouped Microsoft alongside Meta as companies that appeared to be struggling in the data center race.
“Microsoft appears stuck with old software that has fallen out of favor with the market,” Cramer remarked, painting a picture of a company battling legacy headwinds while rivals push ahead.
Cramer noted that Meta faces its own distinct challenge, lacking a cloud business to offset losses from its various AI initiatives outside of Facebook, Instagram, and WhatsApp.
“Even as sales from traditional businesses were spectacular this quarter, nobody cared,” Cramer said, pointing to a disconnect between Microsoft’s underlying performance and investor sentiment.
Microsoft develops software, hardware, and cloud-based solutions, offering products including Windows, Azure, Office, LinkedIn, and Xbox across its diversified portfolio.
Shares of Microsoft rose 3.47% as investor attention continued to focus on the company’s ability to monetize its AI investments and stabilize its enterprise software segment.
