Cramer's Morning Take: Microsoft 11/8/23

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Jim Cramer (0:33)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. Now, I think that one of the things that we have to emphasize is that this has been a continual rally for the big cap, and we see great action at Microsoft close yesterday at a new high.

Jeff Marks (0:51)

What time high?

Jim Cramer (0:52)

We bought some stock. If people go back, we bought some stock.

When it was cratering from the 350 level, and it was just the right thing to do.

Jeff Marks (0:59)

Two quarters ago...

Jim Cramer (1:00)

We made mistakes, but we made some good moves.

Jeff Marks (1:02)

Two quarters ago, they gave a revenue guide that people thought they would have saw more of an uplift from AI, some monetization there. But we bought it a couple of times. Then, of course, last quarter, the one they just reported, fantastic, big acceleration in Azure growth.

Co-pilot General Availability just started November 1st on the earnings call. They talked about the positive feedback they're seeing there.

Jim Cramer (1:26)

Yeah, so a lot of people felt that Microsoft was not necessarily going to be able to monetize AI, and that's proving to be opposite. That was, I think, one of the wraps.

Jeff Marks (1:38)

Yeah, and meanwhile.

Jim Cramer (1:39)

What else were the wraps right here?

Jeff Marks (1:41)

They have a huge investment in open AI. That's their big AI collaborator.

Jim Cramer (1:45)

But why do people not trust them here? That was just genuine business-slowing optimization.

Jeff Marks (1:50)

Yeah, I think it was some of that. Again, it was this concern that they're investing so much in AI, but they're not going to see the revenue benefit from it in any time soon. But again, go back to what Amy Hood said two quarters ago. She talked about basically the co-pilot wasn't in the numbers that she was guiding to yet.

Jim Cramer (2:08)

She was actually saying things that were interpreted as being negative. And you had to go against Amy Hood, who I think in retrospect was not unlike the way Ruth Porat was in alphabet. Off her game, they were off their game.

They didn't tell a good enough story. But Amy Hood.

Jeff Marks (2:24)

But the last quarter.

Jim Cramer (2:25)

Last quarter. Definitely. Yeah. I'm going to have to go back over what Amy Hood said that day because I think that she scared people and she's the best there is. So it's like, you know, she didn't want to talk about something that wasn't shipping yet. That's what it was. She was not going to give you a number for co-pilot when she didn't have one.

Good for her.

Start your day with my outlook on the daily market every morning at 10, 20 a.m. at CNBC. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

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