Jim Cramer Recommends Microsoft as a Buy Following Strong Fiscal Q1 Earnings Results

CNBC host Jim Cramer recommended buying shares of Microsoft while advising caution on Alphabet following their recent quarterly earnings reports. Cramer emphasized Microsoft's capital discipline and ability to generate positive free cash flow of $18.6 billion amid aggressive AI investments. For its fiscal first quarter, Microsoft posted revenue of $92.28 billion, up 18.8% year over year, and net income of $36.63 billion, beating consensus expectations. Growth was led by a 48% surge in Azure cloud revenue. Meanwhile, Alphabet posted negative free cash flow of over $9 billion, triggering a 12.65% drop in its shares.