Cramer's Morning Take: Microsoft 2/24/25

SPEAKER_1 (0:00)

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Jim Cramer (0:49)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. The markets are trying to bounce back from a really ugly Friday, and I don't know if it's gonna take, and I'll tell you why I don't think it's gonna take. There is an ongoing developing and a belief that, frankly, stocks have moved too far. And so you might have a Raytheon which hasn't moved, that goes up, drug stocks kind of go up. But when you see things like Palantir, Oclo, when you see like, frankly, all of the softwares and server stocks going down, you say to yourself, you know, let me wait. And that was the theme of my piece last night. Let's wait.

Jeff Marks (1:30)

Yeah, you said you have doubt, but what do you do? You keep your cash and you wait. And you wait for the market to get oversold. Not nearly there, it was minus 1.42 on the oscillator after Friday.

Jim Cramer (1:42)

Count on the oscillator. The oscillator is gonna give you the signal that you are okay to buy. Now, we do have stocks that are obviously just cascading. One of them is Microsoft. Microsoft went from being a narrative which says, hey, maybe they're saving money on data centers to maybe they should be spending more data centers to maybe the quantum computing is a joke. So you have a universe of this in a couple of days. And what that tells me is Microsoft, as you know, we've been a seller. We have not been a buyer of Microsoft. I have no desire yet to buy it back to you.

Jeff Marks (2:19)

Not yet. So there's really two things happening in the market right now. One, you have a continuation of weak economic data. The Atlanta GDP now forecast went from 2.29 to 2.3 GDP. Their next update is going to be this Friday. But then there was also this report by Cowen on Friday, really making the rounds today, though, about Microsoft canceling some of its US data center leases.

Jim Cramer (2:43)

In Europe, in Europe.

Jeff Marks (2:45)

Yep, in Europe. But also, you know, some maybe some excess capacity in the US. And the first thing that comes to mind is, did they overbuild? Are they overspending? Is demand not there for cloud services? I do know, you guys were talking about this on Squawk, Microsoft IR, to Jeffries, they strongly refuted a change in data center strategy. Also pointing out the power generation bottlenecks could be a factor too, why they can't just build, build, build right now. But it's almost guilty until proven innocent.

Jim Cramer (3:16)

Right. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning minis every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_5 (3:36)

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SPEAKER_2 (4:20)

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