10AM Hour: Warsh's Next Steps, A Bet On The Buildout, Pantry Profits & Meta's Cloud Ambitions 07/01/26

SPEAKER_1 (0:01)

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Carl Quintanilla (0:56)

That's a running joke, but they are going to have, in his words, a good family fight when we meet in a few weeks. It says we're in the first or second ending of this AI revolution. Independence, we will be an independent central bank. No changes there. Some news to come next week on those new task forces. And then DOTS will be present, he said, for a short period of time. I'm Carl Quintanilla with Leslie Picker, David Faber here at Post Night of the New York Stock Exchange. Jim has stuck around for a few minutes because you're working on some stuff.

Jim Cramer (1:25)

Yeah, at this point Bloomberg comes out with a very important story saying that Meta may be interested in selling compute, using its incredible resources to make money. Okay, I have confirmed the story. They expect real revenue, unmatched distribution and consumer access and actual profit for what they have. Actual profit. I wish the other guys had actual profit. That's why their stocks are being killed. Now, Meta did not have a, we know the stock has been not that great, but, and they're confirming this is just a larger part of their, of what they intended, but they have 3.5 billion people and they expect to be able to use their considerable have to make money. I take it from, by the way, Walmart has no idea why the stock is down five. You want to go by Walmart and find the stock's been in big downturn. But I think this is major and I think the fact that Meta has been able to stretch, they've got a course, a course of profitability. What do the other guys have?

David Faber (2:18)

Well, Amazon has AWS, which is very profitable. Microsoft has Azure, which is also growing at a significant.

Jim Cramer (2:26)

I'm talking about AI problem.

David Faber (2:28)

Google has Google. My point, though, is that is where these guys are moving to a certain extent. All of those companies are selling compute to a certain extent, have been, of course, are the major hyperscalers as we call them. Now, some have their own models as well, that being Google with Gemini. Then you've got the Anthropics and the Open AIs and Brock slash Curses of the World. Now, in that case, SpaceX has also chosen to use its enormous compute to sell to others.

And now, pressure had been on Meta potentially to figure out a way to monetize all this enormous spend, right? What, we're talking $150 billion in capital?

Jim Cramer (3:03)

Yes.

David Faber (3:04)

The enormity of it being reflected, for example, in Louisiana.

Jim Cramer (3:08)

But if they're saying they can make a profit with that spend, then you gotta own the stock, because the stock's gonna be cheap.

David Faber (3:13)

It's one way that they can start to monetize the enormous amount of GPUs and everything else that they've been buying to output in data centers that they've been putting up all over the place, largely in Hyperion in Louisiana.

Jim Cramer (3:24)

Right. No, look, Azure's the most popular they have. Amazon Web Service is the most popular they have. Google Cloud is the most popular they have. I am saying that until today, our feeling was, what the heck is Meta doing? It's an ad play. Ad play is a GDP play. A GDP play is worth market multiple no more. They are saying, they are confirming to me that it is going, they're going to use that power to offer a profitable enterprise to their customers, okay?

David Faber (3:50)

No, important, without a doubt. You think it's worth more than 9% of the stock? Yeah.

Jim Cramer (3:55)

Yeah, I said it would be worth 100 points last time. They did it. I'm sticking by that.

Carl Quintanilla (4:00)

We're chipping away. It is the best S&P gainer, still down six for the year. We know 600 has been a pivotal price on this name.

Jim Cramer (4:07)

But anyway, I just want to confirm Walmart does not know why its stock is down, and I am getting the confirmation that the Bloomberg story is right, and they intend to make a profit. And David, you're right, I'm not trying to say that the other guys aren't making money on the web services. I am saying this company is no longer an ad play, which is what people were very disturbed about, why its multiple has shrunk, and shrunk, and shrunk. And that's over.