Jim Cramer on Microsoft (MSFT): Glad We Held On to It Because They Did a Great Job Syeda Seirut Javed Thu, August 6, 2026 at 11:51 AM PDT 4 min read MSFT During August 3's episode of CNBC's Mad Money, host Jim Cramer spotlighted Microsoft Corporation (NASDAQ: MSFT ) as July's eighth-best performer in the S&P 500. After lagging broader tech indices for much of the year, Microsoft posted a massive 24.6% monthly gain, driven by a post-earnings surge: Eighth place, Microsoft, up 24.6%, with most of that gain coming after the company reported a blowout quarter last Wednesday night. Given how weak the stock had been for most of the year, it was a nice surprise. Their Azure cloud infrastructure business is on fire, and lots of people are even paying for Copilot. Plus, Microsoft held the line on capital spending, hence the stunning gains in the stock. It's a big position for my Charitable Trust. Those members of the CNBC Investing Club know that. They also know that I had cooled on it... saying that I hope they do a good job, or we would have to re-evaluate owning the stock. Well, glad we held on to it because they did a great job. Microsoft's Comeback After June Skepticism The July rally stood in stark contrast to the severe selling pressure Microsoft Corporation (NASDAQ:MSFT) faced just weeks earlier. On June 30, Cramer addressed the stock's July selloff after the stock dropped over 17% in a single month, erasing more than $500 billion in market capitalization. He stated: We need to go over what the heck happened to these losing stocks in the month of June, then we'll review all the winners for the quarter. Some of these Mag Seven declines, they are just hideous. The stock of Microsoft, for example, shed over 17% of its value this month, losing over a half a trillion dollars in market cap. Even though it has a decent cloud business, that's not enough to make up for its core software exposure. Wall Street has no use for the software right now. Put aside this false narrative. Software's a real good business. If Microsoft wants to reverse its fortunes, it needs to do something bold like acquiring OpenAI if that company can't come public because of its severe losses. Microsoft has a stake in the company. It can make the trade happen. That would allow it to scrap Copilot and replace it with uber popular ChatGPT. Or it can break itself up into extremely lucrative parts. Yes, Azure, the cloud computing business, Microsoft business-to-business software, Microsoft's consumer software, Microsoft cybersecurity, video games, LinkedIn, all best in field. Listen, after a 17% loss in a month, these guys would be crazy to keep doing what they've been doing. Story Continues As Cramer detailed above, July's 24.6% rally provided relief for long-term investors. After months of underperformance tied to concerns over massive AI infrastructure investments and general tech sector rebalancing, Microsoft Corporation (NASDAQ:MSFT) delivered operational...
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