Jim Cramer: Microsoft Continues to Prove That Gaming Is Strong

Jim Cramer has some thoughts on Microsoft and where he sees strength after earnings.
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Microsoft reported earnings Wednesday after the bell.

The company reported earnings of $1.46 per share and a 13% increase in revenue to $38 billion. Analysts were expecting the company to report earnings of $1.37 per share on revenue of $36.5 billion.

"We are the only company with an integrated, modern technology stack -- powered by cloud and AI and underpinned by security and compliance -- to help every organization transform and reimagine how they meet customer needs," said CEO Satya Nadella.

The stock has risen more than 34% so far this year.

The company's burgeoning cloud segment saw a 17% jump in revenue to $13.4 billion while its personal computing segment saw revenue jump 14% to $12.9 billion.

"Our commercial cloud surpassed $50 billion in annual revenue for the first time this year. And this quarter our Commercial bookings were better than expected, growing 12% year-over-year,” said Amy Hood, executive vice president and chief financial officer. "As we drive growth across the company, we remain committed to investing in long-term strategic opportunities.”

Operating expenses in the quarter also rose 13% to $12.3 billion, including a $450 million charge for the closure of Microsoft Store physical locations.

And Microsoft's Xbox content and services revenue was up 65%, so what does this mean for video games?

Jim Cramer weighs in on this thoughts about Microsoft and where he sees continued strength. 

Watch the video above for more.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here. 

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