CNBC’s Jim Cramer said Tuesday he believes the recent weakness in Microsoft shares has created a favorable situation for investors.
“Microsoft just raised the price of its Office 365, the subscription service. No pushback that I could tell,” the “Mad Money” host said. He noted his charitable trust owns the technology giant and added, “I think the stock’s 25 point decline has given a huge buying opportunity for you.”
Microsoft shares closed at $288.76 apiece Tuesday, rallying 2% on the session. The stock’s all-time intraday is $305.84 on Aug. 20. On Monday, in a tough day for tech broadly, Microsoft traded as low as $280.25 per share, marking the 25-point decline to which Cramer referred. In the past month, Microsoft is down about 4%.
Tuesday was a positive day for mega-cap technology stocks, not just Microsoft. Streaming giant Netflix popped 5.2%, while Google-parent Alphabet rose nearly 1.8% and Apple added 1.4%. Amazon shares advanced 0.98%.
Facebook also took part in the rally, finishing up 2.06% one day after shares sank 5%. That pullback Monday came as investors reacted to the social media company’s worst service outage in more than a decade and digested a “60 Minutes” interview with a whistleblower, who was behind leaked documents to the Wall Street Journal.
Cramer said he believes investors need to be careful with Facebook’s stock, despite the fact shares rebounded Tuesday.
“The whole point of FAANG is that these companies adapt. They pivot. They’re always changing to adjust to new circumstances,” Cramer said, referring to the acronym he coined that stands for Facebook, Amazon, Apple, Netflix and Google-parent Alphabet.
“It’s time for Facebook to prove it still belongs in the club … by making real efforts to protect the safety of its users. I think they can pull it off — I have faith — but until they do, we need to be more cautious,” Cramer said.
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Disclosure: Cramer’s charitable trust owns shares of Apple, Amazon, Microsoft, Facebook and Alphabet.