
More Squawk from Jim Cramer: LinkedIn (LNKD) Acquisition ‘Brilliant Move’ for Microsoft
Updated from 10:20 AM EDT.
NEW YORK (TheStreet) -- Shares of Microsoft (MSFT) - Get Report are slumping 2.88% to $49.99 early Monday afternoon after the tech company said it would acquireLinkedIn (LNKD) for $26.2 billion.
The move "jumpstarts" Microsoft's effort to be in the cloud, TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
The acquisition is a "brilliant move by Microsoft," Cramer added.
After Microsoft's latest quarterly results, it looked like business had "plateaued," especially in Windows, he noted. People also felt the company's cloud strategy had slowed, Cramer mentioned.
"Well boom," Cramer said, "No one's going to say that after today."
Cramer mentioned that Microsoft will not be thought of as a PC company after today. It's the "kiss of death" to be considered a PC company, according to Cramer.
The tech giant said it would buy LinkedIn for $196 per share in cash. Microsoft had a lot of cash, but did not have a lot of social or cloud, Cramer noted.
During the February quarter, LinkedIn used the term "seasonality." Cramer said we are not used to hearing that from a social networking and cloud company such as LinkedIn.
"We don't want to hear that," he stated.
Who knows what LinkedIn will be able to do under Microsoft's tutelage, Cramer added. Shares of LinkedIn are surging 46.93% to $192.59 this afternoon.
"I think Microsoft got a good deal," Cramer said in the above video.
Microsoft is a "buy," he concluded.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on Microsoft stock.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MSFT










