So much focus is put on the FANG stocks -- Facebook Inc (FB) - Get Report , Amazon.com, Inc. (AMZN) - Get Report , Netflix, Inc. (NFLX) - Get Report and Alphabet Inc (GOOGL) - Get Report . But for some reason, Microsoft Corporation (MSFT) - Get Report seems to get swept under the rug, despite its stock already climbing nearly 20% on the year.
Investors hope that momentum continues when Microsoft reports earnings on Thursday after the close. "I think that Microsoft is advancing," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said from the floor of the New York Stock Exchange Wednesday.
International Business Machines Corp. (IBM) - Get Report is trying to boost its cloud business, but it's more of a proprietary cloud, Cramer reasoned, adding that he likes the open cloud format more. Microsoft's Azure cloud business fits that scheme and is giving Amazon and Alphabet a run for its money.
Cramer said he expects Azure and Microsoft's Xbox division to report with an upside surprise on Thursday.
There's one business that's being completely overlooked: LinkedIn. Microsoft bought the company for more than $26 billion (closed the deal December 2016), which could provide the company with tremendous momentum and no one is talking about it, Cramer explained.
This could be the quarter where management opens up about LinkedIn, he concluded, "they could tell you things are really good."
Analysts expect Microsoft to earn 71 cents per share on $24.27 billion in revenue for the most recent quarter.
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At the time of publication, Jim Cramer's Action Alerts PLUS had a position in Facebook and Alphabet.