Cramer's Morning Take: Alphabet 7/24/24

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

Jeff Marks (0:07)

I do want to get to Alphabet earnings because it's pretty important news of the day. The quarter itself, pretty good, not a big beat.

Jim Cramer (0:15)

Except for when it comes to cloud, which I think is pretty important. It used to be the most important metric.

Jeff Marks (0:20)

Yep, quarterly revs, 10.35 billion. That was a beat, solid operating income beat. Concerns about Google Ad, shouldn't be there. That was a beat as well. Well, gen.ai actually helping, not hurting from chat bots. It's the visual search, circular search.

Jim Cramer (0:34)

I was very important that search was not corrupted by chat, by the GPT. Now, all that was washed away by a view that you know what, YouTube saw it. I have evidence in the case that it's not the case, but people are looking for something. With the stock up this much, people are saying, you know what, I'm gonna ring the register, I'm gonna go into this small, medium-sized cap.

And that maybe all the spend that people are doing on data center, maybe that's peaking, hence why Vertiv is down, hence why Eaton is down.

Jeff Marks (1:02)

Yeah, although they do say CapEx was higher than expected, they continue to expect to spend around those figures, 13 billion this quarter for the foreseeable future. Even though many times you've had some analysts question, are the investments, are you getting the ROI?

Jim Cramer (1:17)

But how about that they said, look, Jensen has always held, Jensen Wong, CEO of Nvidia, saying, look, the cost, the penalty of not investing is so great that you may never catch up.

Witness what Elon Musk says. What Elon did not get in there, he still got 50,000 of the H100s from Nvidia, which is a lot, but I think if you go listen to Elon, you know that you can't really get out of the queue. If you're not in the queue, and by the way, who's in the queue?

Google, Amazon, Microsoft, okay? They want them, and then Metta. You'll hear that on the 29th when Zuckerberg sits down in a fireside chat with Jensen. But you have to understand that there is no, the reason why they're spending is because it's spend or die.

And I really believe that. There's only a couple companies in it.

Jeff Marks (2:04)

Yeah, you cannot afford to lose your technological leadership. And then one more thing on YouTube. So yeah, it was the number one streaming watch time in the US, according to Nielsen.

But the company says they were lapping some tough year over year comps from some, a ramp up in spending it from APAC customers.

Jim Cramer (2:23)

Now, by the way, Amazon said the same thing. Amazon got away with it.

Meta got away with it. Google's not getting away with it. So please understand.

Jeff Marks (2:32)

So what would you do with this size? So it's given up a little bit of a ramp.

Jim Cramer (2:35)

Well, no, it was down nine at one point. So it probably revisits down nine. This move to down six and down nine is a little bit early. So maybe if you want to buy 100 shares, buy 25, that's what you're probably, start your day with my out book on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_3 (2:59)

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