Jim Cramer is Talking About These 12 Stocks

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Cramer praised Microsoft Corporation (NASDAQ:MSFT) and pointed out the tech giant’s solid balance sheet and customer base.

“Rates don’t matter all that much to Microsoft or Meta or Google. Neither they nor their clients need to borrow large sums of money so the bond markets are irrelevant to them… Microsoft started going up right at the opening bell. Here’s a company with [an] amazing balance sheet, selling indispensable products to 100 millions of people around the world. People who pay on time regardless of how the economy’s doing.”

Microsoft Corporation (NASDAQ:MSFT) operates with a diversified business model that spans enterprise software, consumer applications, cloud services, gaming, social media, and hardware products. Its broad portfolio has contributed to significant financial success, as highlighted in the fiscal 2024 fourth quarter, which ended on June 30. During this period, the company reported revenue of $64.7 billion and operating income of $27.9 billion, reflecting a 15% increase in both metrics compared to the previous year.

The strong growth was because of several key factors, including heightened demand for Microsoft 365, the company’s suite of office collaboration and productivity tools. Additionally, the revenue generated by Azure, its cloud computing platform, experienced impressive growth, further boosting overall performance. The company also noted a 9% increase in revenue from search and news advertising, illustrating its strength in the digital advertising space.

For the full fiscal year, Microsoft Corporation (NASDAQ:MSFT) achieved a significant milestone as cash flow from operations exceeded $100 billion for the first time, reaching $119 billion. This financial strength allowed the company to return over $34 billion to shareholders throughout the fiscal year.