Jim Cramer Says Wait to Buy Microsoft Stock

Katherine Ross

Is it time to buy Microsoft?

On Monday, Jim Cramer and I discussed Slack, which was downgraded on Friday to a sell from neutral by Goldman Sachs.

The reason? The competition that Slack faces from Microsoft teams.

"While we continue to view Slack as a best-in-class team messaging offering that is favored by the technical community, we expect Microsoft Teams to continue to try and leverage its packaging within Office 365 to drive increased adoption, thus creating the potential for a more competitive environment," wrote analyst Heather Bellini.

Wedbush analyst Dan Ives had a similarly cautious view, noting that while the company delivered solid first-quarter results, it will have “significant difficulty further penetrating the core enterprise market,” specifically Microsoft's Teams product.

Meanwhile, Microsoft has benefitted from working from home. 

Last Thursday, Jefferies analyst Brent Thill affirmed his buy rating on the Redmond, Wash., tech giant and stuck with his $200-a-share price target.

Microsoft has received a significant boost from the shift to work-from-home routines by workers across the globe amid the coronavirus crisis, the Jefferies analyst said.

"The biggest beneficiary of the new work from home environment is in the productivity suite and especially Microsoft Teams, which has seen a large spike in demand," Thill wrote.

So, is this a buy signal since the stock is up 51% over the past year?

Jim Cramer says that now is not the time to buy Microsoft. 

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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