Jim Cramer explained Thursday why investors punish Alphabet and spare Microsoft. The answer is spending. Microsoft spends better. Alphabet spends worse. Both spend billions. One gets a hug.
Let me translate. Two companies set money on fire. Wall Street rates the smoke.
Cramer says the market rewards one flame and punishes the other. I looked at the chart. The chart does not care. The chart has no feelings. The chart is the only honest thing in this story.
Retail traders read Cramer's explanation and nodded. They nodded the way a dog nods at a car engine. Comforting noise. Some of them sold Alphabet on Thursday morning because a man on cable gave a reason after the fact. The reason arrived a day late. So did their courage.
Think about the logic. Microsoft earns a pass. Alphabet earns a spanking. Same quarter. Same industry. Same pile of servers eating same pile of electricity. The difference is vibes, now rebranded as financial spending.
I respect it. Explaining yesterday's price move is the safest job in America. You cannot be wrong. The stock already moved. You are a weatherman announcing that it rained.
Here is my technical read. Support at the level where Cramer stops talking. Resistance at the level where you stop listening. Neither exists.
Sundar Pichai and Satya Nadella will both spend more money next quarter. Investors will again assign one a gold star and the other a detention slip. Then Cramer will explain why.
Buy Microsoft if you must. Sell Alphabet if it helps. Your portfolio has been written off since you first heard the word "earnings."
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