Starbucks stock surges on reports it may drop Microsoft and IBM for AI
As seen on the 24/7 Wall St. homepage on July 9, 2026.
Cramer flags the domino effect risk for enterprise software vendors if a major corporation successfully replaces costly legacy systems with AI solutions.
Starbucks' stock going nuts because it might cut out Microsoft and IBM... Brutal to think about how many companies might switch from current programs to ai--especially after companies see how much a stock climbs if a company can figure out how not to rely on expensive programs.
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Starbucks (SBUX) shares jumped after reports emerged that the company could cut ties with expensive legacy technology providers — specifically Microsoft and IBM — in favor of AI-based alternatives. Jim Cramer flagged the move on X, calling the stock reaction 'going nuts' and noting how brutal it is to consider just how many companies might follow a similar path once they see the kind of stock boost that can come from shedding costly enterprise software.
The broader concern Cramer is pointing to is a domino effect for enterprise software vendors. If a high-profile corporation like Starbucks can demonstrably replace pricey incumbent systems with AI solutions and get rewarded by the market for it, other companies face growing pressure — and growing incentive — to do the same. That puts Microsoft and IBM in a difficult spot as showcase examples of what the market might punish.
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What to watch is whether Starbucks confirms or clarifies the scope of any technology overhaul, and how Microsoft and IBM respond in their own communications to investors. The market's reaction to Starbucks is effectively a live test of how much weight investors are placing on AI-driven cost reduction as a standalone catalyst.