Cramer Calls Microsoft a Buy, Says Alphabet Carries Too Much Baggage

Jim Cramer, host of Mad Money, recommended buying Microsoft following Big Tech earnings and argued Alphabet has excessive baggage, citing its second consecutive quarter of negative free cash flow—cash after capital spending. Alphabet reported negative free cash flow of $9.1 billion in the third quarter, following negative $5.9 billion in the second, and has $27.6 billion of shares left to sell under an at-the-market program that can dilute holders. Microsoft’s free cash flow stayed positive at $18.6 billion though it fell 27% year over year; Azure revenue grew 48%, and CFO Amy Hood said Microsoft expects positive free cash flow through fiscal 2027. Cramer said he would wait for analysts to cut estimates before buying Alphabet.