Cramer's Morning Take: Alphabet 2/5/25

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Jim Cramer (0:46)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. Here's something that people aren't talking about. The treasury decided to not sell a lot of longer dated paper. We have interest rates really plummeting. When you have interest rates really plummeting, whatever you think's gonna happen in the market is gonna have a rosier hue. So even though things were down very badly between four and five a.m., they've kind of moved up, except for some individual stocks that we'll talk about.

SPEAKER_4 (1:14)

Sure, absolutely. And then you did have on the data side ADP, private payroll, a little bit better than expected. That sets up ahead of the jobs report Friday. And then ISM services softer, but the price is paid well below estimates. So that might be another reason why you have the tenure around 442

Jim Cramer (1:31)

Remember, that was the bugaboo of the market. So therefore, it's something that really hurt the market that is not hurting the market needs to be talked about. Because people at home have to recognize, that's ultimately what people will be talking about.

SPEAKER_4 (1:45)

We constantly talk about yields in the frame of also mortgage rates, right, which is a big part of the economy. You need to get the housing market going. We could jump ahead a little bit. We did buy some Home Depot yesterday, exiting, using some of the proceeds from the Stanley Black & Decker sale that we made yesterday ahead of earnings.

Jim Cramer (2:04)

That should just be bought. This is a measurement of the bonds. I wish we could buy more. It's above our basis.

SPEAKER_4 (2:10)

Yeah, certainly. But why don't we turn into some of the big earnings movers of the day, starting with Alphabet. Small revenue miss was a very small earnings beat, but the concern here is that they're spending so much on the catbacks, forecasting $75 billion in 2025 Estimates were less than $60 billion, but they're just not seeing the big revenue growth acceleration from it, although search and YouTube were strong.

Jim Cramer (2:35)

I think that YouTube is really incredible.

What I would say here is that you're just, your jaw drops when you hear how much you're going to spend. They didn't telegraph that right, and it tells me that they fall behind. The actual cloud service is not as strong as people want. I thought it was quite good, but it's not as strong. Yeah. Look, this is one where we've trimmed and trimmed and trimmed and trimmed, and have not gotten behind. I think the last piece we haven't sold because our basis is so good. We don't have a lot after that, but this is one we've not been encouraging people to buy.

SPEAKER_4 (3:06)

Yeah. It was at an all-time high yesterday, so we're giving a lot of that back now, like a flatish for the year. You mentioned the cloud up 30 percent. Was it deceleration from 35 last quarter? It wasn't missed. They are saying it's still capacity constraint. Sort of the same stuff we heard from Microsoft, who also had a little bit of a softer bit.

Jim Cramer (3:22)

I didn't really care for that Microsoft quarter. I know that I want them to start doing more with copilot. I've seen some stories about Salesforce doing incredible with this agent. It has not been the Mag-7's year. One of the reasons why I stopped at the Mag-7's year is they're not giving us these blowouts that we're used to.

SPEAKER_4 (3:39)

Except for Meta.

Jim Cramer (3:40)

Meta is killing it.

SPEAKER_4 (3:43)

Amazon's had a good start, but they report tomorrow.

Jim Cramer (3:45)

They report tomorrow. I don't want to get ahead of myself.

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