Microsoft ‘s breakout rally after a stellar earnings report is warranted, but investors shouldn’t expect the same to hold true for every other Big Tech company, according to Josh Brown . Microsoft’s earnings “made everyone in every Nasdaq stock feel better given how much is riding on this continued capex boom supporting the current valuations in the space. So, look, this is an extraordinary comeback — it’s a magnificent company,” Brown told CNBC’s “Halftime Report” on Thursday. “I think it’s a little bit dangerous to look around and say, ‘Oh, there are probably 500 other Microsofts.’ There aren’t going to be.” The stock jumped 9% Thursday, headed for its best day in five years , after the software giant beat expectations in its fiscal third quarter , and issued surprisingly strong guidance. The strong results were driven mainly by Microsoft’s Azure cloud business. The broader market advanced as well, with the tech-heavy Nasdaq Composite in particular rallying more than 2% after the report showed Microsoft continued to spend heavily on AI infrastructure. The capital expenditures figure — which rose 53% to $16.75 billion, excluding finance leases — relieved investors worried a cutback in spending from the hyperscalers would hurt other AI companies. However, Brown, CEO of Ritholtz Wealth Management and a CNBC Pro contributor , said it’s too soon to sound the all clear for the whole tech space, arguing investors shouldn’t extrapolate what could be an idiosyncratic story at Microsoft to the broader tech sector. “This is a very uniquely positioned company at a specific moment in time in this technology revolution. And I think everyone involved deserves a feather in their cap, but I don’t think that should extend to the next, you know, 200 names in the Nasdaq, in software, in semis, etcetera,” Brown continued. “We should just take this for what it is.” MSFT 1D mountain Microsoft Microsoft is already the top-performing Magnificent Seven company in 2025, as high valuations, as well as challenges around AI spending and tariffs, divide a group that spent the last two years rising together on AI enthusiasm. Shares of the software giant, which are up about 2% this year, are the only of the Mag 7 that have eked out a gain. On the other hand, other megacap stocks such as Apple and Amazon — which report earnings after the close Thursday — are down 15% and 13% this year, respectively. Brown has been highlighting a number of stocks that could outperform in an uncertain macroeconomic environment, such as Netflix . Another stock the investor thinks is in in a uniquely successful position for this tough market is Spotify , which is one of his team’s ” Best Stocks in the Marke t.” All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. INVESTING INVOLVES RISK. EXAMPLES OF ANALYSIS CONTAINED IN THIS ARTICLE ARE ONLY EXAMPLES. THE VIEWS AND OPINIONS EXPRESSED ARE THOSE OF THE CONTRIBUTORS AND DO NOT NECESSARILY REFLECT THE OFFICIAL POLICY OR POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC. ASSUMPTIONS MADE WITHIN THE ANALYSIS ARE NOT REFLECTIVE OF THE POSITION OF RITHOLTZ WEALTH MANAGEMENT, LLC” TO THE END OF OR OUR DISCLOSURE. Click here for the full disclaimer.
