Jim Cramer says Microsoft is a buy after positive free cash flow, while Alphabet faces dilution risk

CNBC host Jim Cramer recommended Microsoft (MSFT) as a buy following its Big Tech earnings, citing the company's positive free cash flow of $18.6 billion and 48% Azure cloud revenue growth. He criticized Alphabet (GOOGL), stating it carries too much baggage due to two straight quarters of negative free cash flow. Alphabet has $27.6 billion of new shares left to sell under its at-the-market program, which could dilute existing holders. Cramer said he would wait for analysts to cut estimates before buying more Alphabet. Together, the three Big Tech earnings reports suggest AI spending is splitting cloud giants by who can fund it internally, with Microsoft appearing to be the only one of the four largest spenders still generating positive free cash flow.