Bracing for Mega-Cap Tech Earnings, Meta Tops Tesla's Market Valuation 4/21/23

Carl Quintanilla (0:00)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

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. Pretty steady pre-market coming off the S&P's worst day in several weeks.

Plenty to work with today from P&G's quarter to some decent flash PMIs in Europe. An 11 month high on their composite, and we'll get our own this hour as well. A roadmap begins with rate expectations, a slew of FedSpeed crossing the tape, pointing to maybe another hike in May, but a pause may be now in view.

David Faber (0:36)

Plus Ford CEO saying the Tesla's price cuts could start a pricing war and turn EVs into commodities. And Meta, topping Tesla in market battle.

Carl Quintanilla (0:48)

Let's begin with the markets. We mentioned Jim's softness yesterday. I mean, worst day in about a month on the S&P.

Jim Cramer (0:54)

Yeah, but remember one time midday, this market is trading very schizophrenic because midday the market looked great and I thought it was going to maybe finish strong. And what we're lacking is just some sort of two or three day up tech. So I mean, Apple has two day up and then it just gives up the ghost. I mean, today we'll have Amazon, there's some positive chatter from JP Morgan, Amazon bullcase. Well, maybe Amazon is able to, after the, I think they let a couple of people go from Whole Foods.

Still trying to figure out, they spend a lot of money on Whole Foods. Now, I think that they actually love it every time I say they need to fire her and tell us about it. Like they say, yeah, that's so great. But the fact is, is that Amazon is trying to rationalize.

And if they rationalize and they figure out how to get something out of the $8 billion Alexa, could be something.

David Faber (1:41)

Isn't it really just all about AWS for that company though at this point? I mean, you know, I know how enormous the marketplace business is, the retail business, but it doesn't really seem to move the needle on profitability.

Jim Cramer (1:52)

Well, they just talk endlessly about football and Alexa. Alexa doesn't have any mileage.

She listens to everything you have to say and then she puts it out to you.

David Faber (2:01)

Reignite the growth rate at AWS. In other words, move it back up above its current growth rate and you've got a higher stock price.

Jim Cramer (2:08)

The growth rate is slowing dramatically.

David Faber (2:09)

That's all I hear about is AWS worth 400 billion or 800 billion.

Jim Cramer (2:12)

Listen, I hear about Oracle, Google taking share. So it's not all better roses up there with the AWS.

David Faber (2:19)

That's my point.

Jim Cramer (2:20)

Maybe below 15% growth, what do you think?

David Faber (2:22)

I don't have an opinion on that, but I just, we spend a lot of time talking about Amazon, as we should for the retail business, but from an investor perspective, that does not seem to be top of mind, Jim.

Jim Cramer (2:34)

You used to talk about advertising, you stopped talking about advertising.

David Faber (2:36)

I did, well, advertising was a very high margin business that was also contributing significantly to profitability, despite its relatively small number in terms of top line.

Jim Cramer (2:46)

I'd like to point out that both Amazon and Alphabet, Alphabet seems to have bottomed on its worst moments, right on the, do you go to Bing, I've been doing Bing, switching back and forth. Bing's giving you very different answers.

David Faber (3:01)

To your queries?

Jim Cramer (3:02)

Yeah, then, then.

David Faber (3:04)

Then search.

Jim Cramer (3:05)

Yeah, then Google search. You wanna try it?

David Faber (3:09)

I have not actually. You have just used Chachi BT directly.

Jim Cramer (3:11)

You have Bing on your PC or did you just disable it?

David Faber (3:13)

I don't use Bing.

Jim Cramer (3:14)

Google teams come, I mean, the stuff that comes up now, when you buy a new PC, it's just every, you're just bought and paid for by these big companies.

And I don't think people like it. I think it's gonna be like a bit of a backlash. I don't like the backlash at Tesla today. Did you see all those names, bold-faced names that were against, they're asking for more supervision?

David Faber (3:33)

Yeah, I did.

Jim Cramer (3:34)

Now, could that be another reason? Tesla stock is, I don't know.