Jim Cramer on Microsoft’s Capex Budget: “That’s Not What the Market Wants”

Now, tonight, we heard from 3 members of the Magnificent Seven. They were wildly antithetic results. They’re not shortage, they’re conscionable idiosyncratic, arsenic we say. Microsoft reported a seemingly better-than-expected quarter, bully apical and bottommost enactment beat. But its banal sold disconnected hard successful after-hours trading. Look, I’ve been telling you to ticker that Azure, their unreality infrastructure business, superior expenditures.

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Microsoft Corporation (NASDAQ:MSFT) develops software, hardware, and cloud-based solutions. The institution provides products similar Windows, Azure, Office, LinkedIn, and Xbox. Cramer analyzed the caller diminution successful the company’s banal during the January 26 episode. The Mad Money big stated:

Next up, Microsoft had the aforesaid occupation erstwhile it reported connected the aforesaid nighttime arsenic Meta successful precocious October. All their numbers for the reported 4th looked great, but aft antecedently saying that their CapEx maturation successful fiscal 2026 would beryllium little than it was successful fiscal 2025, they fundamentally took that backmost and said the other was present true. Oh man, did they termination their stock. CapEx maturation volition beryllium higher this twelvemonth than it was past year, truthful the banal got crushed. The different contented with Microsoft’s past quarter, they projected a flimsy diminution successful the maturation complaint of their Azure unreality business… Even arsenic absorption explained that that was purely owed to proviso constraints, not a alteration successful demand.