Cramer Questions Copilot Adoption as RBC Maintains $640 Target
Jim Cramer questioned Microsoft’s Copilot traction, noting just 15 million users represent roughly 1% of its 1.5 billion customer base and claiming many end users avoid the feature. Meanwhile, RBC Capital maintained an Outperform rating and a $640 share price target, praising Microsoft’s AI and cloud execution.
1. Cramer’s Doubts on Copilot Traction
Jim Cramer highlighted that only 15 million people use Copilot, equating to about 1% of Microsoft’s 1.5 billion total users, suggesting the feature has failed to gain meaningful adoption. He contrasted Copilot’s low engagement with stronger demand for Azure services.
2. RBC Capital’s Bullish Stance
RBC Capital reiterated an Outperform rating on Microsoft with a $640 price target, commending the company’s quarterly execution and robust position in AI and cloud computing. The firm opined that a greater allocation of spending to Azure could have yielded even stronger growth.
3. Market Reaction and Outlook
Shares dipped nearly 5% after the earnings release, reflecting investor uncertainty over AI initiatives. Despite this pullback, analysts continue to view Microsoft’s overall strategy positively, focusing on cloud growth and AI investments as key long-term catalysts.