We’re dipping our toes back into the sell-off and buying a tech giant that’s under pressure
We are buying 50 shares of Microsoft at roughly $397.66. Following the trade, Jim Cramer’s Charitable Trust will own 260 shares of MSFT, increasing its weighting to 3.33% from 2.7%. We’re making our second round of trades during Monday’s global stock rout. Earlier in the session , we “upgraded” our portfolio by selling a couple of lower-quality stocks — Ford and Wynn Resorts — and purchasing more shares of higher-quality companies with good balance sheets and strong management teams in DuPont , Dover , Nextracker and Wells Fargo . But we still have plenty of excess cash left over from those six trades to keep upgrading the portfolio. That’s why we are turning to one of the finest tech companies in the world for our next buy: Microsoft. We lifted our Microsoft rating to a buy-equivalent 1 last week after the stock fell on earnings. The quarter wasn’t perfect due to a slight miss on Azure revenue growth — which still impressively grew 30% year over year — but the forward commentary was bullish, with management expecting revenue growth to accelerate in the second half of fiscal 2025. And as we look out to next year, we also see Microsoft benefitting from the launch of artificial intelligence-infused personal computers and further adoption of its AI digital assistant, known as Copilot for Microsoft 365. (Jim Cramer’s Charitable Trust is long MSFT, DD, DOV, NXT and WFC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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