Amazon Surges on Earnings, Ford Misses, Inflation Watch & the Fed 10/27/23

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC Squawk on the Street. Don't miss a minute of the action.

David Faber (0:08)

Good Friday morning. Welcome to Squawk on the Street. I'm David Faber, along with Jim Cramer. We're live for Post 9 at the New York Stock Exchange. Carl has an assignment today, I think is what it says there. He's on assignment. Let's give you a look at futures as we get ready to wrap up the trading week when we start 30 minutes from now.

That's a little bit of a different picture.

Jim Cramer (0:28)

The money you put up the bonds and let's see how different picture is.

David Faber (0:30)

Yeah, I know, that tenure. All right, let's start with our roadmap though. And it does not start with the tenure. In fact, it starts with Amazon, AWS, its AI strategy. CEO Andy Jassy saying he'd been, quote, surprised at the growth of the company's generative AI business.

Plus inflation seems to be cooling. The Fed's preferred gauge showing the pace of inflation came in at 3.7 percent for the month of September.

And we're keeping an eye on the auto industry. Ford withdraws its guidance, delays EV investments. Meanwhile, the UAA reportedly delivering a new offer to GM. All right, let's start with Amazon. That stock gives up nicely after reporting quarterly results, overall profit more than tripling from last year. CEO Andy Jassy saying on the conference call that he has been surprised by the company's growth in AI.

Andy Jassy (1:24)

You look at the very substantial, gigantic new generative AI opportunity, which I believe will be tens of billions of dollars of revenue for AWS over the next several years.

I think we have a unique and broad approach that's really resonating with customers. You can see it with the array of customers I mentioned that are using us, starting to build workloads for generative AI who have already on top of us. I can see it also just the growth rate for us in generative AI is very fast.

David Faber (2:00)

Of course, if they can get a hold of all the NVIDIA chips they need, even though they're designing their own. Give me your take on the quarter.

Jim Cramer (2:07)

Okay, so you go through what went wrong with Alphabet, in the conference call, which was disorganized, incoherent.

David Faber (2:17)

Getting a little more critical of that Alphabet conference call a few days later.

Jim Cramer (2:21)

That was kind. There's a kind view of it.

And then you take a look at what Meta did wrong, which is kind of like blue-skying the future in cloths.

David Faber (2:31)

Did Meta really do something wrong?

Jim Cramer (2:33)

Well, I happen to think Meta, I went out yesterday last night and said Meta's a bi, but people misinterpreted what he was saying.

David Faber (2:39)

Okay, right.

Jay Gray (2:40)

You take the best of Microsoft.

Jim Cramer (2:42)

Okay. Which was not apples to apples in terms of Azure.

And then you can exit.

And you have what we had last night. The last night was one of those calls which is, all right, everybody who didn't like the other guys, billions and billions, listen to what he said, tens of billions. How do you get better than tens of billions? This was one of those calls where you came away and just said, what the hell are we thinking? This is a company that has revolutionized retail, revolutionized Amazon Web Services, now revolutionized advertising. David, even if you go back to the incredibly really worst part of the Google call, which was the discussion of the NFL package, these guys are talking directly. I mean, I'm watching the bills, not dismantle Tampa Bay, but I'm reading the conference call and I'm saying, they're doing great on that. David, this was a testament to how to do a call versus the predecessors.

David Faber (3:36)

Yeah, and by the way, you've been critical and rightly so. Andy Jassy's first few calls were not.

He's gotten a lot better.

Jim Cramer (3:43)

No, and like I had a kind of a-

David Faber (3:44)

They were not good calls. I mean, I've had a couple of people refer to them.

Jim Cramer (3:47)

Not quite me.

David Faber (3:47)

Remember the disastrous call when he first started, somebody noted. I think you called him out on that.

Jim Cramer (3:52)

We had a kind of a to do.

David Faber (3:54)

So, it was supposed to be a lunch.

Jim Cramer (3:56)

It didn't even become a lunch.

David Faber (3:57)

Is it because he has better news to share or is it because he's also got better communicating on these calls?