Jim Cramer on Microsoft (MSFT): "I Think They Need to Explain Their Story Better"

Microsoft Corporation (NASDAQ:MSFT) is one of the stocks Jim Cramer looked at recently. Cramer explained why the company’s stock declined recently, as he remarked:

That same night, we heard from Microsoft, and the market was not amused. Mr. Softee’s Azure cloud unit saw a deceleration of its revenue growth in part because they were sending essential NVIDIA chips to other parts of the business, including Copilot, so they couldn’t keep up with the Azure demand. Meanwhile, Copilot doesn’t seem to have much demand. They boasted that their AI platform has 15 million paid users, which sounded pretty pitiful to me, given the way that they cram this thing into every aspect of Microsoft Office.

Now, it didn’t help that Microsoft’s still spending a fortune on AI infrastructure, or that 45% of the remaining performance obligations, meaning bookings, came from OpenAI. I’m not too worried about OpenAI, but to many on Wall Street, it’s no longer seen as a reliable customer. And that’s why Microsoft’s stock fell nearly 10% the next day, and it’s kept falling until today, when it finally got a slight bounce. I think they need to explain their story better. Although with the stock now at 24 times earnings, it certainly seems more enticing. Happy to have them on the show to explain what’s going on here. It would certainly help.

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

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