CNBC Investing Club: Cramer’s Morning Take on Alphabet 7/23/26

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**Jim Cramer** (0:56)
Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 1020 a.m. Visit cnbc.com/morningtake to sign up today. That's one word, morning take.
If I ignore that run, and I ignore the fact that oil, that interest rates are high, then I'm just a victim of what happened in 1999 Now, Michael Semblis, a friend of mine from JPMorgan, put out a very damning piece saying, you know, you're in a situation where all the suppliers to the hyperscalers are making a ton of money, but the hyperscalers aren't making any money. Now, that has to change. I'm interviewing Thomas Currian.
He runs the Google Cloud. It's entirely possible you can say, wait, before you give up on things, that includes Google Cloud very good. We do have a bunch of these NeoCloud companies that are doing quite well in Nebius and Corweed. So there are, I think, people who say, wait a second, when you give money, when Alphavit wants more money to go into it, they will make more money, but we do not have a case for that right now.

**Jeff Marks** (2:13)
Let's dig a little bit deeper into the Alphavit quarter because you did have a revenue beat 119.8 billion, first about 117 expected. Google search revenue, a slight miss, they're still up 17% year over year. Google services operating income, a slight miss too. But you have Kurian, you're going to interview him shortly. Cloud was the standout, revenue growth of 82%.
Analysts were looking for 63%, so a hefty beat there. Operating income was better than expected. They're still so capacity constrained. They're adding third party capacity to help onboard new customers. They don't want to give up that share. They'll start to recognize TPU sales.
That will be more apparent in 2027, but pressuring some margins.

**Jim Cramer** (2:59)
I will be talking to him about the conversation with obviously Cloud, but also Gemini Enterprise Momentum. And let's not forget, that's a very important business. So one of the things that's very difficult when you listen to the Google Cloud, Comscore analysis, there's so many. I mean, you've got YouTube Elements, you've got Swarch, you've got Waymo, you have the importance of Gemini, you have the Google Cloud, you have the spending. And I want to focus for a moment on spending, because I think that the most difficult part of the Comscore was when they talked about how they still have a good balance sheet. And they don't.
They do not have a good balance sheet. They have negative cash flow.

**Jeff Marks** (3:38)
Six billion, negative free cash.

**Jim Cramer** (3:40)
They're upping their spending with an uncertain, really an uncertain payback. That's not a good balance sheet. And we, I have to tell you, you and I, we like to buy companies with good balance sheets. And this is no longer one.

**SPEAKER_5** (3:57)
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**SPEAKER_2** (4:28)
This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Join host Keith Lansford for this information packed daily market preview delivered in 10 minutes or less, including projected stock updates, monetary policy decisions and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com/marketupdatepodcast or find Schwab Market Update wherever you get your podcasts.