Alphabet shares fell more than 12% after disappointing earnings, while Microsoft shares rose at the open before slipping less than 1%. Jim Cramer attributes the divergence to Microsoft’s financial discipline as it controls spending while advancing its artificial intelligence ambitions. Its revenue, earnings per share and Azure growth of 48% in constant currency exceeded expectations, while free cash flow reached $18.6 billion. Alphabet, by contrast, missed several forecasts, saw Google Search revenue growth decelerate and reported negative free cash flow of $9.1 billion. Cramer nevertheless remains optimistic about Alphabet over the long term and believes Microsoft shares could reach $600.
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