Cramer says Microsoft and Meta's earnings offer a clear lesson: Don't give up on the tech giants

Core Insights - The key takeaway from the post-earnings reactions of Microsoft and Meta Platforms is that investors should not abandon hyperscalers based on a single quarter's performance [1] Group 1: Microsoft - Microsoft shares fell nearly 10% due to concerns over slowing cloud growth and a weak response regarding AI spending [2] - The market's reaction to Microsoft highlights the volatility in investor sentiment, which can change significantly from quarter to quarter [4] Group 2: Meta Platforms - Meta's stock rose approximately 10% as its AI investments were seen to accelerate revenue growth, alleviating concerns about high spending [2] - Meta's advertising business constituted 97% of its overall revenue for the quarter, showcasing its strong market position [3] - Despite the positive outlook for Meta, previous earnings reports have shown that the market can quickly shift, as seen when Meta's stock tumbled in October due to AI spending concerns [4] Group 3: Alphabet - Alphabet's stock has experienced a turnaround, with positive news regarding its AI technology, particularly the Gemini large language models, boosting investor confidence [5] - The market's perception of Alphabet has shifted from concern over competition from OpenAI to optimism about its AI capabilities [5] - Expectations are high for Alphabet's upcoming earnings report, with predictions that it will be recognized as a winner in AI search [6] Group 4: Nvidia - Nvidia is positioned strongly in the AI chip market, maintaining a significant market share that is difficult for competitors to challenge [6] - The company is viewed as a leader in the AI space, with a stable market position compared to other tech giants [6]