Jim Cramer: Microsoft Is Very Cheap And Is A 'Really Good' Stock

The exam time for Microsoft Corporation's MSFT CEO Satya Nadella has arrived as he prepares to address his first shareholder meeting after taking charge. Microsoft is up 30 percent since Nadella became CEO, but will it continue the upward trajectory?

Jim Cramer thinks so. He discussed on CNBC all the things that Microsoft is doing right under Nadella’s leadership and the things that it needs to make right going forward.

Related Link: Jim Cramer Says 'Machines' Caused Apple's Big Drop

"If you go through his conference calls, the conference calls are all about the rejuvenation of Microsoft as a cloud play, as a mobile play," Cramer said. "I keep waiting for them to say Xbox, we don’t necessarily need it or that they're going to nameplate it better, but Microsoft under Nadella has done a lot of stuff right; under Amy Hood it has done a lot of stuff right. It was upgraded the other day. Stock has paused versus others in the group. My charitable trust owns it, wish we were bigger in it. I think it’s a really good stock."

On Tuesday, JP Morgan initiated coverage on Microsoft at Overweight with a $53 price target. In its note, JP Morgan analysts reasoned that Microsoft’s cloud business is still underestimated and no other tech company has a better enterprise exposure.

Cramer commented on this by saying, "A lot of the high-profile and expensive cloud plays, whether they be fabulous Workday or whether it be Salesforce.com, those are expensive stocks. Microsoft is very cheap."

Shares traded recently at $48.09, down 0.76 percent.