Amazon's AI Spending Plans, A Bitcoin Strategy, & LIVE: Affirm CEO Talks Earnings 2/6/26

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Jim Cramer (1:00)

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

Carl Quintanilla (1:13)

Good Friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Can we finally get a sustainable bounce in software after the IGV falls about 19% in just over a week? Some big names are higher pre-market, but not Amazon, as it does guide to 200 billion in CapEx. Bitcoin bounces off 60K overnight. Our roadmap begins with Amazon raising the stakes in the AI arms race, boosting CapEx, as we said, to $200 billion.

Sara Eisen (1:41)

Crypto is rebounding this morning. Bitcoin narrowly avoiding falling below 60,000, but it is down 20% this week alone. And we got a lot of earnings movers, including a firm, that's the Buy Now, Pay Later company. It did beat estimates. The company's CEO, Max Levchin, will join us for a first on CNBC interview. That's just a few moments from that.

Carl Quintanilla (2:02)

Let's begin with Amazon, under pressure, falling below 200 overnight after these mixed results, revealing some blockbuster AI spending plans. Here's Andy Jassy talking about it on the call.

Andy Jassy (2:14)

We expect to invest about $200 billion in capital expenditures across Amazon, but predominantly in AWS because we have very high demand. Customers really want AWS for core and AI workloads, and we're monetizing capacity as fast as we can install it. We have deep experience understanding demand signals in the AWS business and then turning that capacity into strong return on invested capital. We're confident this will be the case here as well.

Carl Quintanilla (2:41)

Jim, got a handful of price target cuts, at least one downgrade. A lot of discussion about custom chips last night, too.

Jim Cramer (2:46)

Well, the custom chips was good discussion because they didn't necessarily, they didn't think that they threw NVIDIA under the bus, but it's a Marvell chip that they're using and it's cheaper. And they do say that the big gaining factor of profit is how much they have to pay. And that's a slap at NVIDIA. They may not think so. Look, I think the problem is this, the cash flow is not there. So, then you go back to the old days where they had to borrow a lot of money to do what they wanted.

Carl Quintanilla (3:12)

They filed for a mixed shelf this morning.

Jim Cramer (3:14)

Yeah. And I just don't know how much they're going to totally borrow. I mean, look, David, when I spoke to them after, the way I feel about it is, do we really have to do this? And they say, you're looking at it wrong. We make money the moment we turn it on. And then I say, well, how do you know that you're able to do that? And they say, well, listen, if we're not able to do it, then we won't spend the money. So in other words, they're not oblivious to what Wall Street thinks. And I basically said, guys, like, I want to defend you. And they weren't like, well, you can't, it's not our time. They're just saying, you know, it's gonna work. You just have to figure out how long you're willing to wait.

Sara Eisen (3:52)

Right, you gotta believe.

Jim Cramer (3:53)

Right, you have to believe. They have to believe that they're gonna spend a win.

Sara Eisen (3:56)

That said, I think investors were coming in kind of bowled up on the name.

Jim Cramer (4:02)

Yes.

Sara Eisen (4:02)

Hoping and actually getting the kind of growth they were looking for at AWS. Thank you. 24% was incredible. And then annualizing at a higher growth rate than last year. Most quarters, if Amazon put a number like that up at its most important unit, you'd see the stock up dramatically.