CNBC’s Jim Cramer said on Tuesday that he believed the recent weakness in Microsoft stocks had created a favorable situation for investors.
“Microsoft has just increased the price of its Office 365, the subscription service. No reluctance to what I can say,” said the host of “Mad Money”. He noted that his charitable trust owned the tech giant and added, “I think the 25 point drop in the stock has given you a huge buying opportunity.”
Microsoft shares closed at $ 288.76 a coin on Tuesday, up 2% on the session. The historic intraday price for the stock is $ 305.84 on August 20. On Monday, in a tough day for tech in general, Microsoft traded at $ 280.25 a share, marking the 25 point drop Cramer referred to. Over the past month, Microsoft is down about 4%.
Tuesday was a positive day for mega-cap tech stocks, not just Microsoft. Streaming giant Netflix rose 5.2%, while Google’s parent Alphabet grew nearly 1.8% and Apple 1.4%. Amazon shares rose 0.98%.
Facebook was also part of the rally, ending up 2.06% a day after stocks fell 5%. The pullback on Monday came as investors react to the social media company’s worst service outage in more than a decade and digest a “60-minute” interview with a whistleblower, who was behind the leak. of documents to the Wall Street Journal.
Cramer said he believes investors need to be careful with Facebook stocks, despite the fact that stocks rebounded on Tuesday.
“The point of FAANG is that these businesses adapt. They pivot. They always change to adapt to new circumstances,” Cramer said, referring to the acronym he coined which stands for Facebook, Amazon, Apple, Netflix and Google-parent. Alphabet.
“It’s time for Facebook to prove that it still belongs to the club… by making a real effort to protect the safety of its users. I think they can be successful – I have faith – but until they do. do it, we have to be more careful, ”Cramer said.
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Disclosure: Cramer’s charitable trust owns shares of Apple, Amazon, Microsoft, Facebook and Alphabet.